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.