Finding 598747 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-07

AI Summary

  • Core Issue: There was insufficient analysis and oversight of financial records, leading to inaccurate reporting and potential losses in programs.
  • Impacted Requirements: Policies for financial processes were not effectively executed, resulting in poor communication between finance and program teams.
  • Recommended Follow-Up: Enhance regular reconciliation and reporting, and ensure executive management collaborates with program teams for ongoing financial assessments and timely budget modifications.

Finding Text

2022-002 - Adequate Financial Analysis and Oversight of Financial Records Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure adequate financial analysis and oversight are present to properly record and report financial information. Condition: There was a lack of analysis of financial information and oversight over financial records/reporting throughout the year on an overall and individual program/grant level. Cause: Adequate supervision and timely oversight of grant/contract and program financials did not take place creating certain programs to generate losses for cost that could have been vouchered. Further, there was not adequate communication between finance personnel and programmatic personnel throughout the year. Effect: The lack of supervision and oversight resulted in the need for significant adjustments amongst programs to properly present financial results at the program level. Further, executive management and program management did not have accurate program financial data throughout the year. Recommendation: We recommend the management enhance regular reconciliation and reporting at the program and/or grant/contract level. Further, executive management should work with programmatic personnel to regularly assess the detailed financial results of each program, performing evaluations of the collectability of accounts receivable, budget modifications, and other financial assessments in tandem with programmatic reporting. Views of Responsible Official and Planned Corrective Actions: Executive management will expand regular review of timely monthly financials and will review such details with the finance committee of the board. Executive management will work with the program management team to understand budgeting, review budgets with their program managers on a monthly basis and empower them to complete budget modification timely. Executive management will ensure there is clear supervision and oversight duties and that these duties are adequately segregated.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22304 2022-001
    Material Weakness Repeat
  • 22305 2022-002
    Material Weakness
  • 22306 2022-003
    Significant Deficiency Repeat
  • 22307 2022-001
    Material Weakness Repeat
  • 22308 2022-002
    Material Weakness
  • 22309 2022-003
    Significant Deficiency Repeat
  • 22310 2022-001
    Material Weakness Repeat
  • 22311 2022-002
    Material Weakness
  • 22312 2022-003
    Significant Deficiency Repeat
  • 22313 2022-001
    Material Weakness Repeat
  • 22314 2022-002
    Material Weakness
  • 22315 2022-003
    Significant Deficiency Repeat
  • 598746 2022-001
    Material Weakness Repeat
  • 598748 2022-003
    Significant Deficiency Repeat
  • 598749 2022-001
    Material Weakness Repeat
  • 598750 2022-002
    Material Weakness
  • 598751 2022-003
    Significant Deficiency Repeat
  • 598752 2022-001
    Material Weakness Repeat
  • 598753 2022-002
    Material Weakness
  • 598754 2022-003
    Significant Deficiency Repeat
  • 598755 2022-001
    Material Weakness Repeat
  • 598756 2022-002
    Material Weakness
  • 598757 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $240,068
93.558 Temporary Assistance for Needy Families $185,104
16.543 Missing Children's Assistance $129,777
16.812 Second Chance Act Reentry Initiative $101,666
93.958 Block Grants for Community Mental Health Services $74,791
16.582 Crime Victim Assistance/discretionary Grants $69,981
16.588 Violence Against Women Formula Grants $48,147
16.758 Improving the Investigation and Prosecution of Child Abuse and the Regional and Local Children's Advocacy Centers $20,000
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $7,272