Finding 614337 (2022-002)

Material Weakness
Requirement
BL
Questioned Costs
-
Year
2022
Accepted
2023-08-02
Audit: 35205
Organization: Casa De Amparo (CA)

AI Summary

  • Core Issue: There are deficiencies in the review processes for transactions and financial statements, leading to potential noncompliance.
  • Impacted Requirements: Controls must be designed to prevent or detect errors, as outlined in Part 6 of the Compliance Supplement.
  • Recommended Follow-Up: Implement and consistently follow detailed review policies, including vouching expenses to supporting documents, and ensure cross-training of staff on critical review processes.

Finding Text

Criteria Per Part 6 of the Compliance Supplement, controls need to be designed such that they would prevent or detect potential noncompliance. Management should implement control activities through policies. Condition In testing performed over several accounts, the Auditors identified multiple deficiencies that were the result of missing review processes over transactions and financial statement close procedures. Refer to finding 2022-001 for more details. Cause The Organization?s policies and processes regarding review of underlying detail of program expenses and reporting were not consistently applied. Effect Material errors may not be detected or corrected in a timely manner. Questioned Costs None reported. Context The condition noted above was identified during our procedures related to Allowable Costs/Cost Principles and Reporting. Identification as a Repeat Finding Not a repeat finding Recommendation We recommend that the Organization detail review, and consistently follow, established policies and processes of detail review, including vouching to supporting documents, of expenses and reports. Views of Responsible Officials Management concurs with the finding. The Organization revised its review procedures so that they are not impacted by employee turnover. The revised process includes cross-training multiple employees on each critical review process. These steps should correct the deficiency.

Categories

Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 37893 2022-002
    Material Weakness
  • 37894 2022-002
    Material Weakness
  • 37895 2022-002
    Material Weakness
  • 614335 2022-002
    Material Weakness
  • 614336 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $371,731
93.658 Foster Care_title IV-E $137,504
93.667 Social Services Block Grant $68,707
14.218 Community Development Block Grants/entitlement Grants $25,000