Finding 979692 (2023-003)

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Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-06-27
Audit: 310415
Auditor: D'ambra CPA

AI Summary

  • Core Issue: Significant prior period adjustments of $8,285,730 were needed due to accounting errors.
  • Impacted Requirements: The organization failed to follow generally accepted accounting principles due to lack of experienced staff.
  • Recommended Follow-Up: Hire a qualified financial expert or engage an independent review to ensure proper accounting practices.

Finding Text

Condition - Significant prior period adjustments were required to properly reflect the accounts and transactions as of the beginning of the year; Criteria - generally accepted accounting principles identifies the basic accounting practices that are required to be followed; Cause - neither the Organization’s staff nor the prior auditor had the requisite experience to identify and correct the accounting errors; Effect - prior period adjustments totaled $8,285,730; Recommendation - the Organization needed to hire a person with financial experience and/or engage the services of another independent party to review its financial statements for propriety; Response -the Organization experienced a significant turnover in staff during the year resulting in ineffectual cut-off procedures and a review of the prior year financial statements. Late in the year, the organization hired a controller to provide for significantly improved accounting procedures and applications as well as the ability to review the annual financial statements.

Categories

No categories assigned yet.

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.000 Corporation for National and Community Service $212,249
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $201,080
14.239 Home Investment Partnerships Program $187,900
93.945 Assistance Programs for Chronic Disease Prevention and Control $170,636
93.991 Preventive Health and Health Services Block Grant $126,822
93.434 Every Student Succeeds Act/preschool Development Grants $36,396
14.169 Housing Counseling Assistance Program $29,000
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $1,808