Great Lakes Women's Business Council

2021-002 Finding Type Material Weakness Federal Program Microloan Demonstration and Technical Assistance Program to Micro Business, CFDA #59.046 Criteria Accounting books and records should be closed within a timely manner after year end. Condition During our audit, we noted an overall lack of timeliness in closing the year end books. As a result, we noted a significant amount of journal entries which were required to be recorded in order to match the Organization?s final June 30, 2021 trial balance and to adjust the year end balances to their appropriate amounts. Cause The Organization?s bookkeeping staff was overloaded with responsibilities during the year. Effect General ledger accounts were not analyzed and reviewed by management prior to the start of the audit to ensure that the financial records were properly recorded. Identification of a Repeat Finding This is a repeat finding from the prior year?s audit. Recommendation We recommend the Organization review and update, as necessary, its written procedures regarding processing and recording of transactions and monitor such processing to ensure that transactions are processed and reported in a timely and accurate manner. SECTION III (Continued) FEDERAL AWARD AUDIT FINDINGS (Continued) 2021-002 (Continued) Response Management understands the need for written procedures regarding processing and recording of transactions and will monitor such processing to ensure that transactions are processed and reported in a timely and accurate manner. The current plan to ensure timely processing and monitoring transactions will be reviewed and revised to ensure timely closing of year end books. Additional accounting expertise will be secured to assist with this procedure.

2020-002 Finding Type Material Weakness Federal Program Microloan Demonstration and Technical Assistance Program to Micro Business, CFDA #59.046 Criteria Accounting books and records should be closed within a timely manner after year end. Condition During our audit, we noted an overall lack of timeliness in closing the year end books. As a result, we noted a significant amount of journal entries which were required to be recorded in order to match the Organization?s final June 30, 2020 trial balance and to adjust the year end balances to their appropriate amounts. Cause The Organization?s bookkeeping staff was overloaded with responsibilities largely due to working 100% remote due to COVID-19. Effect General ledger accounts were not analyzed and reviewed by management prior to the start of the audit to ensure that the financial records were properly recorded. Recommendation We recommend the Organization review and update, as necessary, its written procedures regarding processing and recording of transactions and monitor such processing to ensure that transactions are processed and reported in a timely and accurate manner. Response Management understands the need for written procedures regarding processing and recording of transactions and will monitor such processing to ensure that transactions are processed and reported in a timely and accurate manner. The current plan to ensure timely processing and monitoring transactions will be reviewed and revised to ensure timely closing of year end books. Additional accounting expertise will be secured to assist with this procedure.

2020-003 Finding Type Significant Deficiency Federal Program Microloan Demonstration and Technical Assistance Program to Micro Business, CFDA #59.046 Criteria Pursuant to the Uniform Guidance compliance requirements related to cash management, when entities are funded on a reimbursement basis, program costs must be paid for by entity funds before reimbursement is requested from the Federal Government. Condition During our audit, we noted one instance in which the Organization submitted an expense for reimbursement prior to the expense being paid by the Organization. Cause The Organization?s bookkeeping staff was overloaded with responsibilities largely due to working 100% remote due to COVID-19. Effect The U.S. Small Business Administration could request repayment of the funds drawn down prior to being paid. However, the chances of this occurring are remote due to the overall immateriality of the transaction. Recommendation We recommend the Organization implement procedures to ensure all program expenses are paid by the Organization prior to being submitted for reimbursement. Response Management understands the need for written procedures regarding processing and recording of transactions and will monitor to ensure all program expenses are paid by the Organization prior to being submitted for reimbursement. Additional accounting expertise will be secured to assist with this procedure.

2020-004 Finding Type Significant Deficiency Federal Program Microloan Demonstration and Technical Assistance Program to Micro Business, CFDA #59.046 Criteria Program reports are required to be submitted within 30 days after the end of the quarter. Condition During our testing, we noted one quarter in which three reports, Form 425 (?Federal Financial Report?), Form PPR (?Performance Progress Report?) and TA Narrative, were not submitted within 30 days after the quarter end, in accordance with the grant agreement. Cause The Organization?s bookkeeping staff was overloaded with responsibilities largely due to working 100% remote due to COVID-19. Effect Required reports not submitted within a timely manner can create difficulties in the relationship with the grantor. Recommendation We recommend procedures be put in place to ensure all required reports are submitted within 30 days after each quarter end. Response Management understands the need for procedures to ensure all required reports are submitted within 30 days after each quarter. Additional accounting expertise will be secured to assist with this procedure.