Finding Text
Type of Finding: Material Weakness in Internal Control over Compliance of Major Programs
•Criteria: Caritas Family Solutions is responsible for implementing and documenting internal controls
over performance reporting to ensure accuracy and compliance with major program requirements.
•Condition: During the audit, it was observed that there were no defined internal controls in place to
oversee and ensure compliance with performance reporting requirements.
•Cause: The absence of internal controls for performance reporting compliance may result from a lack
of established procedures, oversight, or misunderstanding of reporting compliance requirements.
Effect: The lack of internal controls hinders the Organization's ability to monitor and ensure
compliance with performance reporting requirements, potentially affecting the accuracy and timeliness
of performance reports.
•Recommendation: The Organization should promptly establish and enforce clear procedures for
reviewing performance reports, including requiring review by program or executive management before
submission to the granting agency to improve the accuracy and timeliness of performance reports.
•Responsible Party: Gary Huelsmann, Chief Executive Officer
•Management Response and Corrective Action Plan: Caritas Family Solutions acknowledges the finding
and is committed to establishing and enforcing internal control procedures for compliance with
performance reporting requirements. We will work to improve our oversight and compliance in this
regard.
A compliance team will be appointed to ensure that the agency adheres to all compliance
requirements.
The compliance team will work closely with the PM to coordinate and delegate tasks to collect the
data needed to complete the report.
The compliance team will assist in creating a process for maintaining documentation to support
what is reported.
The compliance team will document the level of compliance in which internal controls are followed
and report results to program and agency leadership along with recommendations for improvement.
Internal audits will be conducted in preparation for external audits.
•Anticipated Completion Date: The process will be implemented on January 3, 2024, and will
continuously be reviewed and updated to align with best practices.