Finding 584680 (2022-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-01-10
Audit: 10872
Organization: Clare|matrix (CA)

AI Summary

  • Core Issue: The Organization failed to provide timely and accurate financial statements, violating US GAAP standards.
  • Impacted Requirements: Lack of effective reviews led to non-compliance with government auditing standards and the need for adjusting journal entries.
  • Recommended Follow-Up: Hire an accounting manager with expertise in US GAAP and federal grant accounting to improve financial statement preparation.

Finding Text

Finding 2022-001 – Timely and Accurate Books and Records Maintenance Finding Type: Material Weakness Criteria: Government Auditing Standards require that the financial statements be prepared in accordance with generally accepted accounting principles of the United States of America (“US GAAP”). These principles require that financial statements be prepared on the accrual basis of accounting which is US GAAP compliant because revenues and expenses are recorded and recognized in the period in which they occur. Condition and Context: We noted the Organization was unable to provide timely and accurate financial statements for the period under audit and did not perform effective and ongoing reviews of its financial records to ensure they were in accordance with US GAAP. This resulted in the need to record adjusting journal entries. Cause: The Organization did not perform accurate reviews of such accounts at year end and did not perform a review of the financial statements to ensure they were in accordance with US GAAP. Effect and Potential Effect: This precludes the Organization from preparing financial statements in accordance with US GAAP and disclosure in compliance with professional standards. Questioned Costs: None Repeat Finding: Yes Recommendation: We recommend the Organization hire an accounting manager-level employee with substantial knowledge of US GAAP and federal grant accounting, including required disclosures, to enable internal preparation of financial statements in accordance with the prescribed standards.

Categories

Material Weakness

Other Findings in this Audit

  • 8238 2022-001
    Material Weakness Repeat
  • 8239 2022-001
    Material Weakness Repeat
  • 8240 2022-001
    Material Weakness Repeat
  • 8241 2022-002
    - Repeat
  • 8242 2022-002
    - Repeat
  • 8243 2022-002
    - Repeat
  • 584681 2022-001
    Material Weakness Repeat
  • 584682 2022-001
    Material Weakness Repeat
  • 584683 2022-002
    - Repeat
  • 584684 2022-002
    - Repeat
  • 584685 2022-002
    - Repeat

Programs in Audit

ALN Program Name Expenditures
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $1.25M
93.778 Medical Assistance Program $807,082
93.788 Opioid Str $743,287