Finding 943819 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-02-14
Audit: 290359
Organization: The Inner Voice, Inc. (IL)

AI Summary

  • Core Issue: There is a material weakness in internal controls over financial reporting due to insufficient staffing knowledge.
  • Impacted Requirements: The lack of proper internal controls risks inaccuracies in year-end financial statements and disclosures.
  • Recommended Follow-Up: Ensure the financial statement preparation process is integrated into internal controls, with management oversight and support from the newly hired Director of Finance.

Finding Text

Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of our audit, CliftonLarsonAllen LLP prepared the financial statements. Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to provide management with reasonable assurance year-end reporting of financial information and related disclosures is accurate and in according with accounting principles generally accepted in the United States of America. Effect: The lack of staffing with sufficient knowledge indicates the possibility of the omission of necessary footnote disclosures consistent with generally accepted accounting principles. Cause: CliftonLarsonAllen LLP prepared the financial statements. Repeat Finding: See prior year finding 2022-001. Recommendation: The financial statement preparation process should be part of the internal control system, although the Inner Voice may be financially limited in the hiring of personnel with an up-to-date understanding of accounting preannouncements, proper mitigating factors should be reflected including oversight by management. Views of responsible officials and planned corrective actions: Management agrees with the finding. Inner Voice hired a Director of Finance with extensive experience in accounting and HR on October 16, 2023. The Director of Finance reports directly to the CFO.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 367377 2023-001
    Material Weakness Repeat
  • 367378 2023-002
    Material Weakness Repeat
  • 367379 2023-003
    Significant Deficiency Repeat
  • 367380 2023-004
    Significant Deficiency
  • 943820 2023-002
    Material Weakness Repeat
  • 943821 2023-003
    Significant Deficiency Repeat
  • 943822 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
64.024 Va Homeless Providers Grant and Per Diem Program $185,820
21.027 Rapid Re-Housing Program for Gender-Based Violence - Coronavirus State Fiscal Recovery Funds (arpa) $150,898
21.027 Rapid Re-Housing Program - Coronavirus State Fiscal Recovery Funds (arpa) $132,134
21.027 Arpa Add Ons - Coronavirus State and Local Fiscal Recovery Funds $110,000
14.218 Community Development Block Grant $85,580
14.231 Emergency Solutions Grant Program $68,991
97.024 Fema $40,600
14.267 Continuum of Care Program $18,907
21.027 E & Th - Coronavirus State and Local Fiscal Recovery Funds (arpa) $16,577
14.218 Community Development Block Grant Cares Act 2020 $6,959
21.027 Honor Grant - Arpa Covid-19 $6,171