NEW BEGINNING INTERNATIONAL MINISTRNon-Profit

Failure to Reconcile Bank Accounts - Condition: During the course of the audit, we noted that the bank accounts are not reconciled at year-end to ensure proper cutoff and reporting of cash balances at December 31. Criteria: Regular reconciliation of bank accounts is a critical internal control that ensures the accuracy of financial records. Effect: Without timely reconciliations, the following could occur: a. The Organization risks misstating tis financial position, which may lead to incorrect decision-making by management. b. Unreconciled transactions may conceal unauthorized or fraudulent activity, increasing the risk of financial lossc. c. Unresolved discrepancies can lead to operational inefficiencies, including delays in financial reporting and additional time spent investigating historical transactions. d. Failure to maintain accurate financial records may result in non-compliance with regulatory requirements Recommendations: The Organization should ensure bank reconciliations are performed in alignment with the financial reporting period. Corrective Action: The Organization is working with their financial institution to see if statement closing dates can better align with the reporting period. The Organization will perform the reconciliation if no changes can be made with the bank.

Inaccurate Meal Counts for the Child and Adult Care Food Program Condition: During the course of the audit, we noted that the meal counts from the sponsored cites based on attendance sheets did not always agree to the Claim for Reimbursement Summary submitted to the Tennessee Department of Human Services. The following discrepancies were noted: 1. The recount for Site - Percy Priest Ducks Seven Oaks attendance sheets for July 2023 was 260; however, the client only requested reimbursement for 210 meals. Criteria: The Sponsored Cites claim reimbursement is based on the number in attendance and the number of meals served. Effect: Failure to provide accurate counts to the Tennessee Department of Human Services increases the risk that funds will be received for meals that were not served. Recommendations: The attendance sheets should be an electronic document that will accurately count the students in attendance and the meals served instead of a manual system that increases the risk for errors. Corrective Action: The Organization has plans to transition to a new digital software to electronically receive meal counts.

Condition: During the course of the audit, we noted that all of the Organization’s financial records were not maintained and accounted for in the general ledger system. Criteria: Good internal controls require the Organization’s financial transactions be properly recorded so that a proper audit trial is maintained.Effect: The lack of an adequate general ledger system increases the risk that transactions occur and not be properly recorded, it increases the risk of material misstatements to the financial statements, and it increases the time required to prepare financial statements.Recommendations: The Organization should purchase and maintain a general ledger system that will record all financial transactions

Condition: During the course of the audit, we noted that the bank accounts are not reconciled at year-end to ensure proper cutoff and reporting of cash balances at December 31. Criteria: Good internal controls include the reconciliation of bank accounts by the Organization to ensure cash balances are properly maintained in the ledger and reported. Effect: The lack of adequate bank reconciliations increases the risk that transactions occur and not be properly recorded in the proper accounting period, therefore increasing the risk of material misstatements to the financial statements. Recommendations: The Organization should ensure bank reconciliations are performed in alignment with the financial reporting period

Condition: During the course of the audit, we noted that the meal counts from the sponsored cites based on attendance sheets did not always agree to the Claim for Reimbursement Summary submitted to the Tennessee Department of Human Services. The following discrepancies were noted: The recount for Site - Berkshire Place attendance sheets for February 2022 was 943; however, the client only requested reimbursement for 942 meals. The recount of the Site - Martha O'Bryan Center & Explore attendance sheets for May 2022 revealed that the amount should be 1,275; however, 1,305 was requested for Snacks and 1,316 for Supper. The total reimbursement was $6,463.72 but it should have been $6,273, which is a difference of $190.72. The recount of the Site - Rutherford County Crimson Tide attendance sheets for November 2022 revealed that the amount should be 1,112; however, 1,116 was requested for Snack and 1,116 for Supper The total reimbursement was $6,149.16 but it should have been $6,127.12; which is a difference of $22.04. Criteria: The Sponsored Cites claim reimbursement is based on the number in attendance and the number of meals served. Effect: Failure to provide accurate counts to the Tennessee Department of Human Services increases the risk that funds will be received for meals that were not served. Recommendations: The attendance sheets should be an electronic document that will accurately count the students in attendance and the meals served instead of a manual system that increases the risk for errors

Improper meal counts before submitting reimbursement requests.

Overpayment from the CACFP program.