HOME OPPORTUNITIES MADE EASY, INC.Non-Profit

Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various asset, liability, revenue, and expense accounts. Cause: While reconciliations are being performed, it was noted during the audit that some of them were incomplete and/or incorrect. In addition, there was also an issue related the cutoff and the recording of accounts payable. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Repeat Finding: This is a repeat finding, see finding 2021-001 in the prior year report. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed and implemented new procedures for the monthly reconciliation process that reconciles the general ledger to the government grant reporting forms. Additionally, the organization is in the process of transitioning controller responsibilities to a third-party financial services firm.

Criteria: Payments reimbursed to subrecipients should be made within 30 days of receipt of the payment request. Condition: During our testing of special tests and provisions, we noted multiple payments to subrecipients that were not made within 30 days. Cause: Payments to subrecipients were not made until reimbursement was received from the awarding agency. Effect: Payments to subrecipients were not made within 30 days of receipt of the payment request. Repeat Finding: This is a repeat finding, see finding 2021-002 in the prior year report. Recommendation: A system needs to be put into place to track when payment requests are made to ensure payments to subrecipients can be made timely. Questioned Costs: None. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. After completion of the prior year audit, Management developed a procedure and tracking system for the submission of payment requests from our subrecipients and reimbursement payments to the subrecipients to ensure payments are made within 30 days of the receipt of the request.

Finding 2021-001: Material Audit Adjustments Criteria: The financial statements are the responsibility of the organization?s management. Condition: During our audit, material adjustments were needed to correct the recording of various revenue accounts related to government grants and related receivables. Cause: There was a lack of reconciliations of the general ledger accounts to the federal grant reporting. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the organization?s system of internal control. The audit firm cannot serve as a compensating control. Recommendation: We recommend management perform monthly reconciliations of the general ledger accounts, both in general and to the governmental grant reporting forms. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. Management will develop and implement a procedure for a monthly reconciliation process that reconciles the general ledger to the government grant reporting forms.

Finding 2021-002: Special Tests and Provisions Criteria: Payments reimbursed to subrecipients should be made within 30 days of receipt of the payment request. Condition: During our testing of special tests and provisions, we noted multiple payments to subrecipients that were not made within 30 days. Cause: Payments to subrecipients were not made until reimbursement was received from the awarding agency. Effect: Payments to subrecipients were not made within 30 days of receipt of the payment request. Recommendation: A system needs to be put into place to track when payment requests are made to ensure payments to subrecipients can be made timely. Questioned Costs: None. Responsible Official?s Response: Management agrees with the finding and the recommendation. The issue identified occurred during a transition of the organization?s staff accountant. Management will develop a procedure and tracking system for the submission of payment requests from our subrecipients and reimbursement payments to the subrecipients to ensure payments are made within 30 days of the receipt of the request.