COVER 3 FOOTBALL INC

Finding 2019-001: Internal Control over Financial Reporting Material Weakness Criteria: An Organization?s internal control processes, including segregation of duties, are designed to allow management to prevent, or detect and correct misstatements on a timely basis. Condition: Due to the limited number of staff at the Foundation, one person approved the majority of transactions, even his own transactions. If others were involved in the reviewing and approving function, there was no evidence of their involvement. The lack of segregation of duties was also evident in the lack of review and approval of journal entries, reconciliation and preparation of financial statements. Effect: Audit procedures did not find evidence of review and approvals for the majority of transactions. It was also necessary for the Foundation to have a consultant assist with reconciliations and the preparation of financial statements before the audit could begin. Cause: The Foundation did not have enough staff with accounting knowledge to provide adequate segregation of duties. A consultant was hired to reconcile and prepare the Foundation for the audit. Repeat finding: This is a repeat finding and was originally reported in the fiscal 2018 audits. Recommendation: We recommend that the Foundation continue to utilize a consultant to assist with strengthening internal controls and processes. Context: The number of ?client-prepared? journal entries has been significantly reduced and the current year audits are completed earlier than the 2018 fiscal year. Management response: See Corrective Action Plan

The Foundation will continue to utilize a consultant to assist with strengthening internal controls and processes. In addition, the consultant will review reconciliations and journal entries with management and provide a list of unapproved transactions to the board for their review and approval. Financial statements will be provided to the board on a quarterly basis for their review approval.

2018-001

Finding: 2019-002: Compliance Reporting Material Weakness Material Noncompliance Criteria: Title 2 U.S. Code of Federal Regulations (?CFR?) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (?Uniform Guidance?), Section 200.512 requires the audit to be completed and the related reporting package submitted to the federal government within the earlier of 30 days after the receipt of the auditors? report or nine months after the end of the entity?s fiscal year end. Condition: The financial and compliance audits for the year ended December 31, 2019 were not completed in a timely manner. The issues that caused the delay were not addressed until after the year ended December 31, 2019. Even though the audits for the 2019 fiscal year are being completed sooner than the previous year, corrective action could not be taken before December 31, 2019. Effect: The federal government could impose sanctions under 2 CFR 200.505. Cause: During the 2019 fiscal year, due to limited accounting personnel the reconciliation of the accounting records was delayed. The Foundation encountered difficulty engaging a firm to assist with the annual filing requirement. Recommendation: We recommend the Foundation devote adequate resources to the accounting department to allow for sufficient account analysis and adjustment throughout the year to ensure that the accounting records are closeout timely. Context: The current year audits are completed earlier than the 2018 fiscal year. Management response: See Corrective Action Plan.

The Foundation will continue to utilize a consultant to assist with preparing for year-end audits so that they may be completed on a timely basis. In addition, the Foundation will schedule 2020 audit so that the issuance of the reports will occur prior to October 1, 2021.

2018-002

GSA_MIGRATION

GSA_MIGRATION

2017-001

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION