TRANSITIONAL PATHS TO INDEPENDENT LIVING-AFF OF TRPILNon-Profit

FINDINGS - MAJOR FEDEARL AWARD PROGRAMS AUDIT SIGNIFICANT DEFICIENCY: 2021-003 ? Tracking Financial Results of the Centers for Independent Living Program. Condition: As discussed in Finding 2021-002, the cost center structure utilized as well as the methods used to account for activity and transactions Transitional Paths to Independent Living made it difficult for management to monitor and evaluate the financial results of the Organization by Program, including the cost center for the Centers for Independent Living throughout the year. Criteria: An accounting structure should be established in such a manner to allow management and the Board to monitor and evaluate financial results by program in a timely manner. Effect: The combined impact of the year-end audit adjustments required as well as the cost center structure used by the Organization hindered management?s ability to analyze financial results of the Centers for Independent Living program. Cause: The multistep process Transitional Paths to Independent Living and Affiliates have been going through since the merger in October 2019, including steps needed to adopt a standard accounting system for each program, contributed to this condition. Recommendation: We recommend Transitional Paths to Independent Living simplify its chart of accounts and cost center structure to reflect the budget of the Centers for Independent Living program and to mirror the presentation of the year-end financial statements. Profit and Loss reports by Program should be analyzed throughout the year by management. Managements Response: Management agrees with the finding and recommendation.