Audit of AmeriCorps’ Fiscal Year 2021 Consolidated Financial Statements
Open Recommendations
Perform a risk assessment over the current state of the conversion to ARC and work jointly with ARC, senior leadership, Office of Chief Risk Officer, and functional groups affected by the risk to develop a mitigation strategy and execute a realistic and properly designed corrective action plan. (new)
Continue coordinating with ARC to ensure that its accounting platform is compatible with AmeriCorps’ operations and the type of accounting transactions that AmeriCorps processes. (Modified Repeat).
Conduct a review of transactions processed in Momentum and already migrated to Oracle through interface or reported in Oracle using journal entries, to ensure that correct object class codes were applied. (New)
Establish controls and training to ensure that each functional office/unit performs an independent assessment of internal controlsto inform the CEO’s statement of assurance, even if unfavorable outcomes are expected. This proactive approach will promote the early detection of potential findings and allow for prompt remediation. (New).
Develop and implement audit readiness procedures to ensure that audit information is complete, accurate, has undergone proper quality control procedures, and readily available or can be retrieved timely. The audit readiness procedures should include audit coordination protocol with ARC that clearly define roles and responsibilities of all parties involved in the process. (New)
Continue working with Administrative Resource Center to review and correct AmeriCorps’ balances in detail to ensure they are properly supported and that balances migrated to the ARC platform are complete, accurate, and reliable. (Modified Repeat)
Strengthen its policies and procedures over the processing of JEs going forward now that AmeriCorps has transitioned to the shared service environment. The policies and procedures should cover the following:
A process to track the sequence of JE transactions for completeness.
A policy as to when it is appropriate to use a JE and approval procedures for JEs recorded to ensure segregation of duties.
A requirement to provide a fact-specific description of the purpose of the JE, along with adequate supporting documentation.
Documentation needed to support JEs and how it will be maintained. (Modified Repeat).
Validate and ensure JEs are properly supported, documented, and are readily available for examination. (Modified Repeat)
Validate that the underlying data used in the accrual methodology, such as the use of grantee Undelivered Order balances to allocate accrual amounts, is reliable by ensuring previously reported conditions are remediated and recommendations are implemented. (New)