Finding 574632 (2022-003)

Finding 2022-3 Reporting Requirements Condition: Repeat finding from prior year 2021-3. The organization has internal control policies and procedures that identify all grants/contracts and contributions including the related reporting requirements and deadlines thereto. During the current audit period, the organization was late in filing related reports to a significant number of grants and contracts. While the organization has internal control policies and procedures established, those policies and procedures were not functioning in an operational capacity. Criteria: Internal controls are developed and implemented to safeguard an organization and further its objectives. The control procedures related to reporting are established by each funder and required to be implemented to maintain current levels of funding and potential future funding. Effect of Condition: Without the operation of proper internal control procedures related to reporting, the organization increases the risk of not receiving current funding, falling into a repayment of funding situation and/or risk any future funding from related funder. Cause of Condition: During the fiscal year 2021 and subsequent, the organization had undergone significant changes in personnel including but not limited to executive director(s), financial administrators, and financial staff. The organization’s internal control systems had a lapse of operational implementation. Recommendation: We recommend that the internal control procedures of the organization be reviewed on a revolving schedule for both effectiveness of design of the controls and operational implementation of controls. Proper oversight should be included in the control procedures to afford meeting reporting requirements and timeliness of reporting. View of Responsible Officials and Planned Corrective Actions: Toledo Lucas County Homelessness Board agrees with the finding. The recommended corrections have been developed and implemented as of the date of the audit conclusion.