Finding 584054 (2022-001)

Description: Review of Account Reconciliations and Financial Statements Repeat Finding: No Type of Finding: Significant deficiency in internal controls over the allowable costs and reporting compliance requirements Questioned Costs: None Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, #20-OR-430 and #20-OR-430-C3 Condition: During the year ended June 30, 2022, the Organization relied on its service provider to perform the accounting and financial reporting functions. Internal controls of the Organization are designed to ensure periodic, timely reviews by management of significant account reconciliations and interim financial statements. During the year, these timely reviews did not consistently occur. In addition, this deficiency contributed to delays in completing the audit which caused the audit package submission to the Federal Audit Clearinghouse to be late. Criteria: Internal controls are effective if they are properly designed and implemented to prevent or detect misstatements in a timely manner. Cause: The service provider was unable to provide the Organization with timely reconciliations or financial statements throughout the year. The Organization did not take timely action to ensure such information was provided in accordance with their contract with the service provider and designed internal controls. Effect: As a result of the matter identified in the condition paragraph, a significant deficiency exists in the Organization’s internal controls over financial reporting. Recommendation: We recommend the Organization implements procedures to ensure its service providers are meeting the requirements of the contract and to take timely action when, and if, it becomes apparent the required financial information is not provided on a timely basis. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.