Condition - Material amounts of receivables, payables and capital asset additions were not recorded in the Council’s financial statements. Adjustments were subsequently made by the Council to properly include these amounts in the financial statements. Cause – Council policies do not require and procedures have not been established to require independent review of year end cut-off transactions to ensure the Council’s financial statements are accurate and reliable. Effect – Lack of policies and procedures resulted in Council employees not detecting the errors in the normal course of performing their assigned functions. As a result, material adjustments to the Council’s financial statements were necessary. Recommendation – The Council should implement procedures to ensure all receivables, payables and capital asset additions are identified and included in the Council’s financial statements. Response – We will double check these in the future to avoid missing any receivables, payables or capital asset transactions. Conclusion – Response accepted. INSTANCES OF NON-COMPLIANCE: No matters were noted. Part III: Findings and Questioned Costs For Federal Awards: INSTANCES OF NON-COMPLIANCE: No matters were noted. INTERNAL CONTROL DEFICIENCIES: CFDA Number 93.959: Block Grants for Prevention and Treatment of Substance Abuse Pass-through Entity Identifying Numbers: 5887CT005 and 5888CPO49 Federal Award Year: 2017 and 2018 Prior Year Finding Number: III-A-17 U.S. Department of Health and Human Services Passed through the Iowa Department of Public Health III-A-18 Segregation of Duties – The Council did not properly segregate custody, (2018-001) record-keeping and reconciling functions for revenues, including those related to its federal program. See II-A-18. Part IV: Other Findings Related to Required Statutory Reporting: No matters were noted.
Condition - Material amounts of receivables, payables and capital asset additions were not recorded in the Council’s financial statements. Adjustments were subsequently made by the Council to properly include these amounts in the financial statements. Cause – Council policies do not require and procedures have not been established to require independent review of year end cut-off transactions to ensure the Council’s financial statements are accurate and reliable. Effect – Lack of policies and procedures resulted in Council employees not detecting the errors in the normal course of performing their assigned functions. As a result, material adjustments to the Council’s financial statements were necessary. Recommendation – The Council should implement procedures to ensure all receivables, payables and capital asset additions are identified and included in the Council’s financial statements. Response – We will double check these in the future to avoid missing any receivables, payables or capital asset transactions. Conclusion – Response accepted. INSTANCES OF NON-COMPLIANCE: No matters were noted. Part III: Findings and Questioned Costs For Federal Awards: INSTANCES OF NON-COMPLIANCE: No matters were noted. INTERNAL CONTROL DEFICIENCIES: CFDA Number 93.959: Block Grants for Prevention and Treatment of Substance Abuse Pass-through Entity Identifying Numbers: 5887CT005 and 5888CPO49 Federal Award Year: 2017 and 2018 Prior Year Finding Number: III-A-17 U.S. Department of Health and Human Services Passed through the Iowa Department of Public Health III-A-18 (2018-001) Segregation of Duties – The Council did not properly segregate custody, record-keeping and reconciling functions for revenues, including those related to its federal program. See II-A-18. Part IV: Other Findings Related to Required Statutory Reporting: No matters were noted.
18SubstanceAbuseReport_45D2B0862B240.docx