Finding 587374 (2023-003)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2023
Accepted
2024-01-31
Audit: 14751
Auditor: Armanino

AI Summary

  • Core Issue: There is a significant deficiency in internal controls for monitoring earmarking compliance at Caritas Family Solutions.
  • Impacted Requirements: The absence of defined procedures raises concerns about the grant's integrity and adherence to its intended use.
  • Recommended Follow-Up: Establish and document a robust internal control process by January 3, 2024, with clear procedures and a dedicated compliance team to ensure ongoing oversight.

Finding Text

Type of Finding: Significant Deficiency in Internal Controls of Major Programs •Criteria: Caritas Family Solutions is responsible for implementing and documenting controls over compliance with earmarking requirements. •Condition: The audit revealed that there was no defined internal control process in place to monitor and ensure compliance with the earmarking compliance requirements. Cause: The absence of an internal control process for earmarking compliance may result from a lack of clear procedures, oversight, or the failure to establish and implement necessary controls. •Effect: The lack of an internal control process to oversee earmarking compliance requirements raises concerns about the grant's adherence to its intended use, potentially jeopardizing the grant's integrity and purpose. •Recommendation: The Organization should establish and document an internal control process that ensures compliance with earmarking requirements. This process should include clear procedures, monitoring, and reporting mechanisms. •Responsible Party: Gary Huelsmann, Chief Executive Officer •Management Response: Caritas Family Solutions acknowledge the finding and are committed to establishing and enforcing internal control procedures for earmarking compliance requirements. We will work to improve our oversight and compliance in this regard. A compliance team from the QI Department will be appointed to ensure that the program adheres to all compliance requirements. The compliance team will work closely with the PM to coordinate and delegate tasks to determine how and what data will be collected. The compliance team will work closely with the PM to determine who has responsibility for data entry, compilation, and processing. The compliance team will assist the program in creating a process for maintaining, storing, and securing data for the required period. The compliance team will review compliance throughout the life of the grant and adjust, as necessary. •Anticipated Completion Date: The process will be implemented on January 3, 2024, and will be continually updated to align with best practices.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 10930 2023-001
    Material Weakness
  • 10931 2023-002
    Material Weakness
  • 10932 2023-003
    Significant Deficiency
  • 10933 2023-004
    Material Weakness
  • 10934 2023-005
    Material Weakness
  • 10935 2023-006
    -
  • 10936 2023-007
    -
  • 10937 2023-008
    Significant Deficiency
  • 10938 2023-009
    Material Weakness
  • 587372 2023-001
    Material Weakness
  • 587373 2023-002
    Material Weakness
  • 587375 2023-004
    Material Weakness
  • 587376 2023-005
    Material Weakness
  • 587377 2023-006
    -
  • 587378 2023-007
    -
  • 587379 2023-008
    Significant Deficiency
  • 587380 2023-009
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
17.235 Senior Community Service Employment Program $104,027
97.024 Emergency Food and Shelter National Board Program $14,443