Audit 10117

2023-01 (Material Weakness ) Criteria: Organizations receiving federal funds are required to have monitoring policies and procedures in place to provide reasonable assurance that material misstatements in the financial statements are detected. Condition: Current year activity in fixed assets were not properly recorded. Expenditures to improve buildings was erroneously recorded to repairs account, gain on sale of building improperly calculated, and depreciation expense was not recorded. Context: Deficiency was discovered while performing substantive testing on repairs and maintenance and fixed asset accounts. Effect: Material misstatements in the financial statements were not detected in a timely manner. Cause: Organization has gone through multiple accounting personnel that did not have the knowledge or skills to perform transaction entry into accounting software in prior years and this was not corrected in the current year in part due to the short interim period between finishing prior audit and starting current year audit. Historically, Organization has not recorded depreciation Recommendation: The Organization review its transactions for repairs and maintenance and obtain the fixed assets depreciation schedule in order to properly record real estate transactions. This is a repeat finding Response: We acknowledge that there is currently not a sufficient process in place to ensure that capital expenditures and depreciation are properly recorded. A policy will be implemented to review the accounting records to ensure that capital expenditures and depreciation are properly recorded now that the Organizations has staff and an outsourced accounting firm with the knowledge and skills to fulfill this need.

2023-02 (Significant Deficiency ) Criteria: Organizations receiving federal funds are required to have monitoring policies and procedures in place to provide reasonable assurance that material misstatements in the financial statements are detected. Condition: Current year activity in accounts payable and accrued expense accounts were not properly recorded. Expenditures incurred prior to year-end but not yet paid were not properly recorded as accrued liabilities. Context: Deficiency was discovered while performing substantive testing on subsequent fiscal year activity Effect: Material misstatements in the financial statements were not detected in a timely manner. Cause: Organization has gone through multiple accounting personnel that did not have the knowledge or skills to perform transaction entry into accounting software in prior years and this was not corrected in the current year in part due to the short interim period between finishing prior audit and starting current year audit. Historically, Organization has not recorded accounts payable. Recommendation: The Organization should review its transactions invoiced but not paid prior to year-end in order to properly record accrued liabilities. This is a repeat finding Response: We acknowledge that there is currently not a sufficient process in place to ensure that accounts payable are properly recorded. A policy will be implemented to review the accounting records to ensure that accounts payable are properly recorded now that the Organizations has staff and an outsourced accounting firm with the knowledge and skills to fulfill this need.

2023-01 (Material Weakness ) Criteria: Organizations receiving federal funds are required to have monitoring policies and procedures in place to provide reasonable assurance that material misstatements in the financial statements are detected. Condition: Current year activity in fixed assets were not properly recorded. Expenditures to improve buildings was erroneously recorded to repairs account, gain on sale of building improperly calculated, and depreciation expense was not recorded. Context: Deficiency was discovered while performing substantive testing on repairs and maintenance and fixed asset accounts. Effect: Material misstatements in the financial statements were not detected in a timely manner. Cause: Organization has gone through multiple accounting personnel that did not have the knowledge or skills to perform transaction entry into accounting software in prior years and this was not corrected in the current year in part due to the short interim period between finishing prior audit and starting current year audit. Historically, Organization has not recorded depreciation Recommendation: The Organization review its transactions for repairs and maintenance and obtain the fixed assets depreciation schedule in order to properly record real estate transactions. This is a repeat finding Response: We acknowledge that there is currently not a sufficient process in place to ensure that capital expenditures and depreciation are properly recorded. A policy will be implemented to review the accounting records to ensure that capital expenditures and depreciation are properly recorded now that the Organizations has staff and an outsourced accounting firm with the knowledge and skills to fulfill this need.

2023-02 (Significant Deficiency ) Criteria: Organizations receiving federal funds are required to have monitoring policies and procedures in place to provide reasonable assurance that material misstatements in the financial statements are detected. Condition: Current year activity in accounts payable and accrued expense accounts were not properly recorded. Expenditures incurred prior to year-end but not yet paid were not properly recorded as accrued liabilities. Context: Deficiency was discovered while performing substantive testing on subsequent fiscal year activity Effect: Material misstatements in the financial statements were not detected in a timely manner. Cause: Organization has gone through multiple accounting personnel that did not have the knowledge or skills to perform transaction entry into accounting software in prior years and this was not corrected in the current year in part due to the short interim period between finishing prior audit and starting current year audit. Historically, Organization has not recorded accounts payable. Recommendation: The Organization should review its transactions invoiced but not paid prior to year-end in order to properly record accrued liabilities. This is a repeat finding Response: We acknowledge that there is currently not a sufficient process in place to ensure that accounts payable are properly recorded. A policy will be implemented to review the accounting records to ensure that accounts payable are properly recorded now that the Organizations has staff and an outsourced accounting firm with the knowledge and skills to fulfill this need.