Finding Text
2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Shelter Grants - Other Cluster Assistance Listing Number: 93.658 Pass-Through Agency: Children's Network of Southwest Florida Pass-Through Number(s): GBQ01 Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Financial Reporting Condition: Investments and related investment income, as well as in-kind revenues and expenses, were materially misstated at June 30, 2022. Revenues and assets were incorrectly overstated due to the error with investments and revenues and expenses were understated due to the error with not recording in-kind revenues and expenses. As a result, audit entries were required to properly record the investments, investment income, and in-kind revenues and expenses for the year ended June 30, 2022. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: Assets, revenues, and expenses were materially misstated for the year ended June 30, 2022. Cause: The Organization made errors when recording investments and related investment income. The Organization was not recording in-kind revenues and expenses as required by GAAP. Repeat finding : This is not a repeat finding. Recommendation: The Organization should record review the investment activity and reconcile to the general ledger on a monthly basis. This reconciliation should be reviewed and approved by someone other than preparer. Views of responsible officials and planned corrective actions : Management will ensure investment activity is reviewed and reconciled to the general ledger on a monthly basis.