PARTNERS FOR WOMEN AND JUSTICE, INC.Non-Profit

Finding --- Inadequate controls over the financial reporting process, such as performing reconciliations, posting yearly adjustments and posting of closing adjustments for annual financial reporting. Criteria --- Management should have in place a system by which to capture all adjusting journal entries necessary to analyze year end account balances and close the books. A review should be performed by someone other than the preparer to ensure all adjustments are posted. Condition --- Although the Organization prepared certain schedules for annual financial reporting, adjusting journal entries were not made that agreed the financial statements to the support schedules. Context --- During the financial audit, a review of the prior year comparison indicated that yearly adjustments had not been posted and historical amounts existed in certain accounts that did not contain a balance in the current year, but for which management had prepared a schedule. Effect --- Without a process and formal reviews for the annual financial close, certain adjustments could be missed and material misstatements could occur. Cause --- There were several changes in the financial department from the prior year. Recommendation --- The Organization should continue to seek out qualified personnel, board members or an external certified public accountant to perform reviews of accounting functions. The Organization should also develop written procedures for the annual financial closing process. A review should be performed by someone other than the preparer to ensure all adjustments are posted for a complete and accurate set of books. Management response --- Management will develop and implement written procedures for the annual financial closing process. A review will be performed by someone other than the preparer to ensure completeness and accuracy of the annual financial information.

Finding --- The reporting package was not made available to users timely. Criteria --- The Federal Audit Clearinghouse requires a reporting package to be submitted within the earlier of 30 days after receipt of the audit report(s), or nine months after the end of the audit period. Condition --- The Organization submitted the reporting package on May 30th, 2025. Context --- In its financial state, a limited number of resources were available to perform a timely close and audit submission. Effect --- The Organization cannot be considered low risk in the future year. Cause --- A late Federal Audit Clearinghouse Submission precludes the Organization from being considered low risk per the Uniform Guidance. Recommendation --- The Organization should develop procedures to ensure that future annual financial statement closing procedures are performed timely and that reporting packages are submitted to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditors’ reports or 9 months after the end of the audit period. Management response --- The Organization will seek to achieve a timelier closing process and audit submission.

Finding --- Inadequate controls over the financial reporting process. More specifically, the posting of closing adjustments for annual financial reporting. Criteria --- Management should have in place a system by which to capture all adjusting journal entries necessary to analyze year end account balances and close the books. A review should be performed by someone other than the preparer to ensure all adjustments are posted. Condition --- Although the Organization prepared certain schedules for annual financial reporting, adjusting journal entries were not made that agreed the financial statements to the support schedules. Context --- During the financial audit, a review of the prior year comparison indicated that historical amounts existed in certain accounts that did not contain a balance in the current year, but for which management had prepared a schedule. Effect --- Without a process and formal reviews for the annual financial close, certain adjustments could be missed and material misstatements could occur. Cause --- There were several changes in management at the Organization and an external accountant that was part of the internal controls process in prior years was not utilized during the current year. Recommendation --- The Organization should develop written procedures for the annual financial closing process. A review should be performed by someone other than the preparer to ensure all adjustments are posted for a complete and accurate set of books. Management response --- Management will develop and implement written procedures for the annual financial closing process. A review will be performed by someone other than the preparer to ensure completeness and accuracy of the annual financial information.

Finding --- Inadequate controls regarding preparation and review of the Report of Expenditures of Schedule of Expenditures of Federal Awards. Criteria --- There was no direct mapping of expenditures from the Organization?s accounting system to the Schedule of Expenditures of Federal Awards by program. Condition --- The Organization did not utilize the ?class? function of the accounting software and did not have another way to distinguish its programs other than through excel, where individual transactions were not detailed. Reviews of the schedule failed to capture inconsistencies and errors in reporting. Context --- During the compliance audit, it was noted that individual expenses were not traceable to the Schedule of Expenditures of Federal Awards and additional analysis needed to be performed to obtain comfort over the expenditure amounts presented. Effect --- Allocation errors may exist that may not be remediated timely enough for a budget modification if one is needed. There is a risk that non-allowable or other program expenditures could be charged to the contract. Cause --- The new Director of Administration and Finance, continues to enhance the accounting infrastructure and was considering the change to classes prior to the audit commencing. Recommendation --- The Organization should implement classes or purchase an accounting software specific for non-profit use, which utilizes sub-classes and programs allocations. Management response --- Management will continue to enhance the internal structure of the chart of accounts to maintain full transparency. Reviews over the Schedule will be enhanced to capture and remediate inconsistencies and errors in reporting underlying expenditures.