Finding Text
Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays
in issuing the September 30, 2022, audited financial statements which were due June 30, 2023.
IMPACT was making adjustments to the year ended September 30, 2022, general ledger to
reconcile unusual fund balances, indicating they were not reviewed during the year.
Criteria or Specific Requirement: An accounting system should provide timely and accurate
information for management. The reconciliation of account balances is an integral internal
control activity to determine that stated account balances are accurate and fairly reported.
Organization management and accounting personnel should reconcile general ledger accounts to
subsidiary ledgers and other supporting documents in a timely and effective manner.
Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective
control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform
Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit
period.
Effect: Without performing adequate account reconciliations, information provided to
management is inaccurate. Also, the probability that fraud or material errors will occur and go
undetected generally increases.
Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel,
combined with the late issuance of the September 30, 2021, audited financial statements
resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit.
Repeat: Yes - Years as Repeat Finding: Two 2021-001
Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts
are reconciled timely and accurately.
View of Responsible Officials: Management agrees with the finding and has developed and
begun implementation of a corrective action plan.
Audit finding 2022-001 represents a material weakness in internal control over compliance for
IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been
repeated from the prior year.