Audit 293124

Criteria Management is responsible for the preparation of the financial statements. Part of this responsibility is the identification, calculation, and recording of all significant adjusting journal entries required to present the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition Our audit procedures identified unallowable costs that were recorded for a non-major program. Subsequent to identifying the unallowable costs, we proposed, and management approved, adjustments to the schedule of expenditures of federal awards, which have corrected the identified unallowable costs. Population of Items Tested Our audit procedures identified two material adjusting journal entries to correct errors in the financial statements that had not been previously identified by the Organization’s internal controls. Cause of Condition Misstatements of various grant receivables and revenue and associated fixed assets and accounts payable as a result of both existence and cutoff issues were discovered by audit procedures. Management recorded various fixed assets in Fiscal Year 2023 that the Organization did not yet possess or relate to Fiscal Year 2024. Effects of Condition The Organization’s financial statements as of and for the year ended June 30, 2023 were misstated prior to the application of auditing procedures by the Organization’s external auditors. Auditor’s Recommendations 1. The Organization’s management should record all adjusting journal entries necessary to report the account balances and transactions of the Organization prior to providing the trial balance summarization to the auditor for use in the annual financial statement audit. Transactions near year-end, both before and after year-end, should be closely scrutinized for posting to the correct fiscal year. 2. If there are adjusting entries that management leaves knowingly for the auditor to propose as a part of the audit, this fact should be made clear to the auditor prior to the engagement. In addition, a member of management possessing the necessary accounting skills, knowledge, or experience must review the adjusting journal entries and the supporting documentation and provide specific approval of the calculation and the drafted adjusting journal entries.

Criteria Management is responsible for the preparation of the financial statements. Part of this responsibility is the identification, calculation, and recording of all significant adjusting journal entries required to present the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition Our audit procedures identified unallowable costs that were recorded for a non-major program. Subsequent to identifying the unallowable costs, we proposed, and management approved, adjustments to the schedule of expenditures of federal awards, which have corrected the identified unallowable costs. Population of Items Tested Our audit procedures identified two material adjusting journal entries to correct errors in the financial statements that had not been previously identified by the Organization’s internal controls. Cause of Condition Misstatements of various grant receivables and revenue and associated fixed assets and accounts payable as a result of both existence and cutoff issues were discovered by audit procedures. Management recorded various fixed assets in Fiscal Year 2023 that the Organization did not yet possess or relate to Fiscal Year 2024. Effects of Condition The Organization’s financial statements as of and for the year ended June 30, 2023 were misstated prior to the application of auditing procedures by the Organization’s external auditors. Auditor’s Recommendations 1. The Organization’s management should record all adjusting journal entries necessary to report the account balances and transactions of the Organization prior to providing the trial balance summarization to the auditor for use in the annual financial statement audit. Transactions near year-end, both before and after year-end, should be closely scrutinized for posting to the correct fiscal year. 2. If there are adjusting entries that management leaves knowingly for the auditor to propose as a part of the audit, this fact should be made clear to the auditor prior to the engagement. In addition, a member of management possessing the necessary accounting skills, knowledge, or experience must review the adjusting journal entries and the supporting documentation and provide specific approval of the calculation and the drafted adjusting journal entries.

Criteria Management is responsible for the preparation of the financial statements. Part of this responsibility is the identification, calculation, and recording of all significant adjusting journal entries required to present the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition Our audit procedures identified unallowable costs that were recorded for a non-major program. Subsequent to identifying the unallowable costs, we proposed, and management approved, adjustments to the schedule of expenditures of federal awards, which have corrected the identified unallowable costs. Population of Items Tested Our audit procedures identified two material adjusting journal entries to correct errors in the financial statements that had not been previously identified by the Organization’s internal controls. Cause of Condition Misstatements of various grant receivables and revenue and associated fixed assets and accounts payable as a result of both existence and cutoff issues were discovered by audit procedures. Management recorded various fixed assets in Fiscal Year 2023 that the Organization did not yet possess or relate to Fiscal Year 2024. Effects of Condition The Organization’s financial statements as of and for the year ended June 30, 2023 were misstated prior to the application of auditing procedures by the Organization’s external auditors. Auditor’s Recommendations 1. The Organization’s management should record all adjusting journal entries necessary to report the account balances and transactions of the Organization prior to providing the trial balance summarization to the auditor for use in the annual financial statement audit. Transactions near year-end, both before and after year-end, should be closely scrutinized for posting to the correct fiscal year. 2. If there are adjusting entries that management leaves knowingly for the auditor to propose as a part of the audit, this fact should be made clear to the auditor prior to the engagement. In addition, a member of management possessing the necessary accounting skills, knowledge, or experience must review the adjusting journal entries and the supporting documentation and provide specific approval of the calculation and the drafted adjusting journal entries.

Criteria Management is responsible for the preparation of the financial statements. Part of this responsibility is the identification, calculation, and recording of all significant adjusting journal entries required to present the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition Our audit procedures identified unallowable costs that were recorded for a non-major program. Subsequent to identifying the unallowable costs, we proposed, and management approved, adjustments to the schedule of expenditures of federal awards, which have corrected the identified unallowable costs. Population of Items Tested Our audit procedures identified two material adjusting journal entries to correct errors in the financial statements that had not been previously identified by the Organization’s internal controls. Cause of Condition Misstatements of various grant receivables and revenue and associated fixed assets and accounts payable as a result of both existence and cutoff issues were discovered by audit procedures. Management recorded various fixed assets in Fiscal Year 2023 that the Organization did not yet possess or relate to Fiscal Year 2024. Effects of Condition The Organization’s financial statements as of and for the year ended June 30, 2023 were misstated prior to the application of auditing procedures by the Organization’s external auditors. Auditor’s Recommendations 1. The Organization’s management should record all adjusting journal entries necessary to report the account balances and transactions of the Organization prior to providing the trial balance summarization to the auditor for use in the annual financial statement audit. Transactions near year-end, both before and after year-end, should be closely scrutinized for posting to the correct fiscal year. 2. If there are adjusting entries that management leaves knowingly for the auditor to propose as a part of the audit, this fact should be made clear to the auditor prior to the engagement. In addition, a member of management possessing the necessary accounting skills, knowledge, or experience must review the adjusting journal entries and the supporting documentation and provide specific approval of the calculation and the drafted adjusting journal entries.