Finding Text
Type of Finding:
Material Weakness in Internal Control over Financial Reporting
Condition: During the course of our audit, misstatements in the accounting record were detected as a result of audit procedures performed. An adjustment was posted by management to correct the misstatement. The corrected misstatements impacted beginning net assets without donor restrictions, revenue, accounts receivable and decreased the change in net assets by $49,377.
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: Inaccurate financial reporting could adversely affect the decision-making process for the management of the Inner Voice.
Cause: Accounting principles generally accepted in the United States of America were not followed over the accounting of a grants received that were unconditional.
Repeat Finding: See prior finding 2022-002.
Recommendation: We recommend that management review policies and procedures over year-end transactions to ensure that all necessary adjustments are being posted on a timely basis, in the appropriate period, and in accordance with generally accepted accounting principles.
Views of responsible officials and planned corrective actions: Management agrees with the finding. Management will be reviewing policies and procedures in the month of May every year. Additionally, the Director of Finance has been hired and joined Inner Voice effective October 16, 2023. The additional member of the finance department will allow for stronger internal controls and segregation of duties.