Finding Text
Finding 2022-002 ? Material Weakness ? Preparation of the Schedule of Expenditures of Federal Awards Criteria ? The schedule of expenditures of federal awards of a not-for-profit organization should be complete and supported by sufficient audit documentation and available for governance and funders to make timely decisions based on the reports. Condition ? The schedule of expenditures of federal awards and related supporting documentation were not completed in their entirety and available to be audited in a timely fashion as evidenced by a significant amount of adjustments needed to reconcile the schedule of expenditures of federal awards to the general ledger, grant awards, and confirmation received from funding sources. This caused the single audit completion to be delayed. Cause ? Inadequate audit trail and lack of proper cross training of personnel prevented a smooth transition when there was employee turnover in the finance and accounting department. Effect or Potential Effect ? Lack of timely and accurate financial information prevents management, governance and the Organization?s funders to make appropriate decisions regarding the management of the Organization?s programs. Questioned Costs ? None Context ? During the course of our audit, there were a significant number of adjustments made to reconcile the schedule of expenditures of federal awards to the general ledger, grant awards, and confirmation received from funding sources. Recommendation ? Governance and management of the organization should reassess the roles in its finance and accounting department and provide sufficient cross training to ensure proper accounting and reporting of federal awards. Views of Responsible Officials ? See corrective action plan.