Finding Text
Type of Finding: Significant Deficiency in Internal Control over Compliance of Major Programs
•Criteria: Caritas Family Solutions is responsible for implementing and documenting internal controls
over financial reporting to ensure accuracy and compliance with major program requirements.
Condition: During the audit, it was observed that financial reports were submitted and subsequently
reviewed by the Chief Financial and Administrative Officer (CFAO). We noted that two of the five
months tested for the SA2 monthly financial report lacked the CFAO's review signature.
•Cause: The absence of review signatures on the SA2 financial reports and subsequent review of the
SA1 reports may result in inadequate reporting or a lack of established oversight of grant reporting
requirements.
•Effect: The lack of review indicates deficiencies in the financial reporting review process, potentially
affecting the accuracy and compliance of financial reports submitted to the granting agency and the
possible loss or return of funding.
•Recommendation: The Organization should promptly establish and enforce clear procedures for
reviewing financial reports, including requiring review by program or executive management before
submission to the granting agency.
•Responsible Party: Gary Huelsmann, Chief Executive Officer
•Management Response and Corrective Action Plan: Caritas Family Solutions acknowledges the finding
and agree to implement procedures for reviewing financial reports and ensuring that the CFAO signs
off on the review before submission to the granting agency. We are committed to improving the
accuracy and compliance of financial reports.
•Anticipated Completion Date: In July 2023, management implemented formal review, performed by the
CFAO, of all SA1 and SA2 reports.