FAC Explorer

Finding 61549 (2022-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 56719
Organization: Wabanaki Health and Wellness (ME)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: The Organization has a repeat material weakness in its year-end financial reporting process, leading to necessary adjustments in multiple accounts.
  • Impacted Requirements: Internal controls over period-end reporting were inadequate, resulting in non-compliance with generally accepted accounting principles.
  • Recommended Follow-Up: The Organization should enhance year-end procedures and implement robust internal controls to ensure accurate financial statements and prevent future misstatements.

Finding Text

Finding Number: 2022-002 Repeat Finding: Yes Type of Finding: Material Weakness Description: Year End Cutoff Condition: The Organization is responsible for the internal controls over the period-end financial reporting process, including controls over procedures to recognize transactions in the correct period and properly adjust the general ledger. During the audit, it was required to post several material adjusting journal entries to convert the Organization?s financial records to the financial statements as reported. Adjustments were required to correct accounts payable not reconciled at year end, to adjust prepaid expenses, to adjust grants receivable and refundable advances for current year activity, to record promises to give, to adjust contributions with and without donor restrictions and to adjust debt for payments made during the year. This is a repeat finding from the December 31, 2021 audit, finding number 2021-002. Criteria: Internal controls should be properly designed and implemented for the Organization to ensure timely and accurate period-end financial reporting. Cause: Internal controls over year end reconciliations of the general ledger and financial reporting were not operating as designed. Effect: The Organization?s internal controls over financial reporting at the general ledger and financial statement levels were not adequate to ensure that a material misstatement of grant agreements would be prevented and/or detected. The Organization was not always in compliance with accounting principles generally accepted in the United States. Recommendation: We recommend the Organization continue to evaluate its year end closeout procedures and put processes in place to ensure that all balance sheet accounts are reconciled from support to the general ledger. The Organization should design and implement effective internal control procedures to ensure the financial statements and related notes are free from material misstatements. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 61526 2022-001
    Material Weakness Repeat
  • 61527 2022-002
    Material Weakness Repeat
  • 61528 2022-003
    Significant Deficiency Repeat
  • 61529 2022-006
    Significant Deficiency Repeat
  • 61530 2022-008
    Significant Deficiency Repeat
  • 61531 2022-001
    Material Weakness Repeat
  • 61532 2022-002
    Material Weakness Repeat
  • 61533 2022-003
    Significant Deficiency Repeat
  • 61534 2022-006
    Significant Deficiency Repeat
  • 61535 2022-007
    Material Weakness Repeat
  • 61536 2022-008
    Significant Deficiency Repeat
  • 61537 2022-009
    Significant Deficiency Repeat
  • 61538 2022-001
    Material Weakness Repeat
  • 61539 2022-002
    Material Weakness Repeat
  • 61540 2022-003
    Significant Deficiency Repeat
  • 61541 2022-006
    Significant Deficiency Repeat
  • 61542 2022-008
    Significant Deficiency Repeat
  • 61543 2022-001
    Material Weakness Repeat
  • 61544 2022-002
    Material Weakness Repeat
  • 61545 2022-003
    Significant Deficiency Repeat
  • 61546 2022-006
    Significant Deficiency Repeat
  • 61547 2022-008
    Significant Deficiency Repeat
  • 61548 2022-001
    Material Weakness Repeat
  • 61550 2022-003
    Significant Deficiency Repeat
  • 61551 2022-006
    Significant Deficiency Repeat
  • 61552 2022-007
    Material Weakness Repeat
  • 61553 2022-008
    Significant Deficiency Repeat
  • 61554 2022-009
    Significant Deficiency Repeat
  • 61555 2022-001
    Material Weakness Repeat
  • 61556 2022-002
    Material Weakness Repeat
  • 61557 2022-003
    Significant Deficiency Repeat
  • 61558 2022-006
    Significant Deficiency Repeat
  • 61559 2022-007
    Material Weakness Repeat
  • 61560 2022-008
    Significant Deficiency Repeat
  • 61561 2022-009
    Significant Deficiency Repeat
  • 61562 2022-001
    Material Weakness Repeat
  • 61563 2022-002
    Material Weakness Repeat
  • 61564 2022-003
    Significant Deficiency Repeat
  • 61565 2022-006
    Significant Deficiency Repeat
  • 61566 2022-008
    Significant Deficiency Repeat
  • 61567 2022-009
    Significant Deficiency Repeat
  • 637968 2022-001
    Material Weakness Repeat
  • 637969 2022-002
    Material Weakness Repeat
  • 637970 2022-003
    Significant Deficiency Repeat
  • 637971 2022-006
    Significant Deficiency Repeat
  • 637972 2022-008
    Significant Deficiency Repeat
  • 637973 2022-001
    Material Weakness Repeat
  • 637974 2022-002
    Material Weakness Repeat
  • 637975 2022-003
    Significant Deficiency Repeat
  • 637976 2022-006
    Significant Deficiency Repeat
  • 637977 2022-007
    Material Weakness Repeat
  • 637978 2022-008
    Significant Deficiency Repeat
  • 637979 2022-009
    Significant Deficiency Repeat
  • 637980 2022-001
    Material Weakness Repeat
  • 637981 2022-002
    Material Weakness Repeat
  • 637982 2022-003
    Significant Deficiency Repeat
  • 637983 2022-006
    Significant Deficiency Repeat
  • 637984 2022-008
    Significant Deficiency Repeat
  • 637985 2022-001
    Material Weakness Repeat
  • 637986 2022-002
    Material Weakness Repeat
  • 637987 2022-003
    Significant Deficiency Repeat
  • 637988 2022-006
    Significant Deficiency Repeat
  • 637989 2022-008
    Significant Deficiency Repeat
  • 637990 2022-001
    Material Weakness Repeat
  • 637991 2022-002
    Material Weakness Repeat
  • 637992 2022-003
    Significant Deficiency Repeat
  • 637993 2022-006
    Significant Deficiency Repeat
  • 637994 2022-007
    Material Weakness Repeat
  • 637995 2022-008
    Significant Deficiency Repeat
  • 637996 2022-009
    Significant Deficiency Repeat
  • 637997 2022-001
    Material Weakness Repeat
  • 637998 2022-002
    Material Weakness Repeat
  • 637999 2022-003
    Significant Deficiency Repeat
  • 638000 2022-006
    Significant Deficiency Repeat
  • 638001 2022-007
    Material Weakness Repeat
  • 638002 2022-008
    Significant Deficiency Repeat
  • 638003 2022-009
    Significant Deficiency Repeat
  • 638004 2022-001
    Material Weakness Repeat
  • 638005 2022-002
    Material Weakness Repeat
  • 638006 2022-003
    Significant Deficiency Repeat
  • 638007 2022-006
    Significant Deficiency Repeat
  • 638008 2022-008
    Significant Deficiency Repeat
  • 638009 2022-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $2.06M
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $894,088
93.933 Demonstration Projects for Indian Health $754,569
93.011 National Organizations of State and Local Officials $692,226
93.738 Pphf: Racial and Ethnic Approaches to Community Health Program Financed Solely by Public Prevention and Health Funds $574,127
93.859 Biomedical Research and Research Training $439,613
93.772 Tribal Public Health Capacity Building and Quality Improvement Umbrella Cooperative Agreement $319,573
10.225 Community Food Projects $207,726
93.137 Community Programs to Improve Minority Health Grant Program $201,707
93.762 A Comprehensive Approach to Good Health and Wellness in Indian County ? Financed Solely by Prevention and Public Health $189,184
15.144 Indian Child Welfare Act_title II Grants $148,473
93.872 Tribal Maternal, Infant, and Early Childhood Home Visiting $136,305
66.306 Environmental Justice Collaborative Problem-Solving Cooperative Agreement Program $113,481
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $93,023
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $78,800
93.558 Temporary Assistance for Needy Families $65,632
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $55,054
93.958 Block Grants for Community Mental Health Services $50,059
93.493 Community Project Funding/congressionally Directed Spending Construction $44,560
21.027 Coronavirus State and Local Fiscal Recovery Funds $43,695
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $23,357
93.587 Promote the Survival and Continuing Vitality of Native American Languages $20,200
93.268 Immunization Cooperative Agreements $15,211
93.788 Opioid Str $7,500
93.959 Block Grants for Prevention and Treatment of Substance Abuse $5,750