Finding 974544 (2022-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-05-21

AI Summary

  • Core Issue: The Organization lacks sufficient internal resources to prepare GAAP-compliant financial statements.
  • Impacted Requirements: Internal controls over financial reporting are inadequate, increasing the risk of errors in financial statements.
  • Recommended Follow-Up: Management should stay informed about financial reporting requirements and ensure thorough review and approval of financial statements.

Finding Text

Financial Statement Finding-Preparation of GAAP Based Financial Statements-Criteria: Internal controls over financial reporting include those related to the actual preparation and review of the audited financial statements in conformity with generally accepted accounting principles (GAAP). Condition: The Organization has limited internal resources to prepare full-disclosure financial statements required by GAAP. Cause: Management has elected to have the financial statements and the related notes to the financial statements prepared by the independent auditor as part of the audit. Effect: Inadequate controls over financial reporting of the Organization could result in the likelihood that the Organization would not be able to prepare the financial statements and the related notes to the financial statements without the assistance of the auditors. Recommendation: For entities of the Organization's size, it generally is not practical to obtain the internal expertise to handle all aspects of the external financial reporting. Management should continually be aware of the financial reporting requirements and should review and approve the completed financial statements. Views of Responsible Officials and Planned Corrective Actions The Organization’s management is aware of this significant deficiency and addresses it by obtaining our assistance in the preparation of the Organization’s annual financial statements. Management reviews and approves the completed statements and distributes them to the users.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 398101 2022-001
    Material Weakness
  • 398102 2022-002
    Material Weakness
  • 398103 2022-003
    Material Weakness
  • 974543 2022-001
    Material Weakness
  • 974545 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
17.235 Senior Community Service Employment Program $1.68M
84.287 Twenty-First Century Community Learning Centers $691,820
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $101,133
93.052 National Family Caregiver Support, Title Iii, Part E $101,033
17.259 Wia Youth Activities $88,249
97.114 Emergency Food and Shelter National Board Program (arra) $76,637
14.218 Community Development Block Grants/entitlement Grants $36,667
10.558 Child and Adult Care Food Program $24,042
14.850 Public and Indian Housing $11,733