Finding 572067 (2024-003)

Material Weakness
Requirement
M
Questioned Costs
-
Year
2024
Accepted
2025-07-28

AI Summary

  • Core Issue: The organization failed to complete payroll liability reconciliations, leading to non-compliance with U.S. GAAP.
  • Impacted Requirements: Financial statements were not accurately reported, risking penalties due to unaddressed pension liabilities.
  • Recommended Follow-Up: Implement timely monthly reconciliations and reviews to ensure compliance and accurate financial reporting.

Finding Text

Finding: Item 2024-003 – U.S. GAAP Accounting- Material Weakness Criteria: The Organization's financial statements should be reported in accordance with U.S. GAAP. Condition/Context: Reconciliations for payroll liabilities (taxes and fringe benefits) were not completed throughout the fiscal year. Adjusting entries were recorded during the audit for the financial statements to be in accordance with U.S. GAAP. Cause: Internal control policies and procedures were not folowed or enforced. Effect or potential effect: The Organization was not able to generate interim and year-end financial statements in accordance with U.S. GAAP. Additionally, failure to reconcile the simplified employee pension liability may result in noncomplance with the plan and penalties. Questioned cost: Not applicable. Repeat Finding: Not applicable Recommendation: We recommend that reconciliations and accruals be prepared and reviewed on a timely basis, monthly at a minimum. View of responsible officials: Management’s response is reported in “Corrective Action Plan” at the end of this report.

Corrective Action Plan

Recommendation: Reconciliations and accruals should be prepared and reviewed on a timely basis. Management Views: Management agrees with the finding noted during the 2024 fiscal year audit. Action Planned: Reconciliations have been caught up and are current. A monthly checklist of reconciliations to be performed and reviewed is being utilized to ensure timely completion and review. Anticipated Completion Date: Complete Responsible Party: Catina Downey, CPA with oversight of Heidi Hooker, Executive Director

Categories

Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 572065 2024-001
    Material Weakness
  • 572066 2024-002
    Material Weakness
  • 1148507 2024-001
    Material Weakness
  • 1148508 2024-002
    Material Weakness
  • 1148509 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.889 National Bioterrorism Hospital Preparedness Program $1.38M