Stoneleigh Housing, Inc.

Material Weakness: As discussed at Finding 2024-001 Monthly bank reconciliations were not performed for any bank accounts for the period January through August 2024. As a result, discrepancies between the bank statements and the organization’s accounting records were neither identified nor investigated in a timely manner. The absence of these controls increases the risk of errors or omissions in financial reporting, may result in noncompliance with accounting standards, and could lead to material misstatements or undetected errors in the financial statements and in charges to federal awards. We recommend that management implement a formal policy requiring monthly bank reconciliations for all bank accounts. Staff responsible for this process should receive appropriate training and completed reconciliations should be reviewed and approved by a supervisor and the review should be documented. This will help ensure the accuracy of cash records and strengthen the organization’s internal control environment.

Material Weakness: As discussed in finding 2024-002 the organization does not provide adequate training for accounting staff, nor is there evidence of supervisory review of staff work. The absence of these controls increases the risk of errors or omissions in financial reporting and may result in noncompliance with applicable accounting standards. We recommend management implement a formal training program and require documented supervisory review of all significant accounting tasks to strengthen the control environment.

Condition: The auditee did not submit the data collection form (Form SF-SAC) and the Single Audit Reporting Package to the Federal Audit Clearinghouse by the required deadline.