Senior Services, Inc.Non-Profit

Section II - Financial Statement Findings SIGNIFICANT DEFICIENCY Finding: 2019-001 Criteria: Bank reconciliations should be performed in a timely manner and reviewed by appropriate personnel. Condition: Bank reconciliations were not prepared in a timely manner and did not show evidence that they were reviewed by appropriate personnel. Effect: Internal control is weakened when time passes and significant transactions that affect the bank account of the organization are not reconciled on a timely basis. Cause: Small staff size and change in personnel made experience with the organization's banking transactions difficult to identify and reconcile. Recommendation: Bank statements should be reconciled on a timely basis and a review of appropriate personnel should be evident by documentation. Views of responsible officials and planned corrective actions: Management agrees that bank reconciliations to ledger need to be performed accurately and timely. Bank reconciliations were performed and reviewed (not initialed, but reviewed) for the fiscal year 2019, however, management will make sure they are initialed as reviewed in the future. Also, all bank transactions are now reconciled to the general ledger as they are recorded before closing a month to ensure the accuracy and timely recording of transactions.

Section III - Federal Award Findings and Questioned Costs SIGNIFICANT DEFICIENCY Finding: 2019-002 Criteria: Activities Allowed or Unallowed Funds may be used for services associated with access to supportive services for in-home services. Condition: Documentation for route sheets for the months of January and February 2019 were mistakenly shredded by the organization for the Meals-on-Wheels program. Effect: No documentation for the months of January and February 2019 was available for testing in the Aging Cluster program. Cause: A large shredding job was completed at the organization in July 2019 and program route sheets from January and February 2019 were inadvertently shredded as part of the project. An internal investigation revealed that the boxes in question were mistakenly placed in the shredding area rather than on shelving designated for their storage. Recommendation: Review of the internal control procedures safeguarding the filing of documentation for such records be reviewed. Views of responsible officials and planned corrective actions: Management has already taken steps to strengthen the internal control by (1) files to be shredded will be placed in the upper part of the storage room in a clearly marked "shredding" area. (2) Boxes holding Meals-on-Wheels program route sheets will be housed separately from any material needing to be shredded. These boxes will be relocated from the storage room to a more secure, isolated closet within the agency.