2021-004: Credit card statements were not reconciled to the general ledgerCriteria: Section 200.303 of Part 200 Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards requires an entity toestablish and maintain effective internal control over the federal award thatprovides reasonable assurance the entity is managing the federal award incompliance with federal statutes and terms of the federal award.A well-defined financial close process ensures all significant account balancesare reconciled and any adjustments are recorded prior to the issuance offinancial statements.Condition& Context: We noted the credit card statements were not properly reconciled to thegeneral ledger resulting in a material dollar amount of expenses not beingrecorded in the accounting records at year-end delaying the audit and resultingin material adjustments to the accounting records, including expenses, totaling$340,966.Effect: The lack of an effective financial close process creates a potential for materialexpenses impacting federal awards not to be recorded in the proper period.Cause: Lack of a well-defined procedure ensuring an effective financial close of theaccounting records combined with turnover of accounting staff.Recommendation: Hiring of competent and experienced accounting staff with knowledge offederal audit and compliance requirements is paramount to addressing thismaterial weakness in addition to designing and implementing a well-designedfinancial close process.
Federal Agency: National Institutes of HealthFunding: Passed through The University of MontanaProgram(s): Allergy, Immunization, and Transplantation ResearchYear: 2021MATERIAL WEAKNESS:2021-004: Credit card statements were not reconciled to the general ledgerCorrective Action PlanInimmune experienced significant turnover in our financial accounting department in 2021. We are currently hiring a Chief Financial Officer and Comptroller to ensure adequate financial controls are in place moving forward. We have experienced recurring issues with backorders on our company credit card that were back-dated on the credit card statement, AMEX uses order date instead of transaction date on their statement for posting charges. When the transactions are uploaded to Quickbooks the back-dated charge alters a previously reconciled budget period. The number of backorders due to SARS-CoV-2 greatly increased in 2021. We are in the process of changing credit card providers to fix this recurring issue.
2020-001
2021-005: Timely ReportingCriteria: According to 2 CFR Section 200.512, the audit must be completed and the datacollection form, and the reporting package must be submitted within the earlierof 30 calendar days after receipt of the auditor?s reports, or nine months afterthe end of the audit period. The reporting deadline was September 30, 2022.Condition& Context: During our compliance testing, we noted that the data collection form was tobe submitted by September 30, 2022.Effect: The submission was non-compliant with reporting requirements.Cause: The audit was delayed from effects of other material weaknesses identifiedand additional time was necessary for adjustments to the financial statements.Recommendation: Hiring of competent and experienced accounting staff with knowledge offederal audit and compliance requirements is paramount to addressing thismaterial weakness in addition to designing and implementing a well-designedfinancial close process allowing the reporting package to be submitted timely.View of responsibleofficials andplanned correctiveactions: Inimmune experienced significant turnover in our accounting department. Weare currently hiring a Chief Financial Officer and Comptroller that will result intimely filing of the reporting package.
Federal Agency: National Institutes of HealthFunding: Passed through The University of MontanaProgram(s): Allergy, Immunization, and Transplantation ResearchYear: 20212021-005: Timely ReportingCorrective Action PlanInimmune experienced significant turnover in our financial accounting department in 2021. We are currently hiring a Chief Financial Officer and Comptroller to ensure adequate financial controls are in place moving forward allowing us to submit the reporting package timely.
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