Audit 301915

Finding #2023-001 – Material Audit Adjustments Condition: The auditors proposed audit adjustments that, if not made, would have resulted in the financial statements being materially misstated. Effect: The District’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Financial reports generated by the accounting system may not provide an accurate reflection of the District’s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions Criteria: Proper financial closing and year-end reconciliation procedures should be in place to identify and adjust the financial records to ensure the financial statements are fairly stated. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded and reconciled in a timely manner. Response: The District acknowledges their responsibility for the financial statements and recording of the current year activity. Going forward, the District will verify that all activity is completely and accurately recorded in the financial records and reflected on the financial statements.

Finding #2023-002 – Lack of Financial Close Process and Delayed Accounting Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. Multiple grant claims were not filed throughout the year and large adjustments were needed to record revenues. Effect: Financial reporting from the District’s general ledger could be materially misstated. Delayed grant claims could cause cash flow issues. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Criteria: During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings. Grant claims should be reconciled to the general ledger and submitted throughout the year. Receivables should be recorded as of year end as needed. Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Reconcile payroll liabilities. Develop procedures to review and submit grant claims throughout the year and reconcile to the general ledger. Response: The District will work to establish procedures to reconcile accounts monthly and grant claims are reconciled and submitted throughout the year.

Finding #2023-001 – Material Audit Adjustments Condition: The auditors proposed audit adjustments that, if not made, would have resulted in the financial statements being materially misstated. Effect: The District’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Financial reports generated by the accounting system may not provide an accurate reflection of the District’s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions Criteria: Proper financial closing and year-end reconciliation procedures should be in place to identify and adjust the financial records to ensure the financial statements are fairly stated. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded and reconciled in a timely manner. Response: The District acknowledges their responsibility for the financial statements and recording of the current year activity. Going forward, the District will verify that all activity is completely and accurately recorded in the financial records and reflected on the financial statements.

Finding #2023-002 – Lack of Financial Close Process and Delayed Accounting Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. Multiple grant claims were not filed throughout the year and large adjustments were needed to record revenues. Effect: Financial reporting from the District’s general ledger could be materially misstated. Delayed grant claims could cause cash flow issues. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Criteria: During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings. Grant claims should be reconciled to the general ledger and submitted throughout the year. Receivables should be recorded as of year end as needed. Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Reconcile payroll liabilities. Develop procedures to review and submit grant claims throughout the year and reconcile to the general ledger. Response: The District will work to establish procedures to reconcile accounts monthly and grant claims are reconciled and submitted throughout the year.

Finding #2023-001 – Material Audit Adjustments Condition: The auditors proposed audit adjustments that, if not made, would have resulted in the financial statements being materially misstated. Effect: The District’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Financial reports generated by the accounting system may not provide an accurate reflection of the District’s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions Criteria: Proper financial closing and year-end reconciliation procedures should be in place to identify and adjust the financial records to ensure the financial statements are fairly stated. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded and reconciled in a timely manner. Response: The District acknowledges their responsibility for the financial statements and recording of the current year activity. Going forward, the District will verify that all activity is completely and accurately recorded in the financial records and reflected on the financial statements.

Finding #2023-002 – Lack of Financial Close Process and Delayed Accounting Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. Multiple grant claims were not filed throughout the year and large adjustments were needed to record revenues. Effect: Financial reporting from the District’s general ledger could be materially misstated. Delayed grant claims could cause cash flow issues. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Criteria: During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings. Grant claims should be reconciled to the general ledger and submitted throughout the year. Receivables should be recorded as of year end as needed. Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Reconcile payroll liabilities. Develop procedures to review and submit grant claims throughout the year and reconcile to the general ledger. Response: The District will work to establish procedures to reconcile accounts monthly and grant claims are reconciled and submitted throughout the year.

Finding #2023-001 – Material Audit Adjustments Condition: The auditors proposed audit adjustments that, if not made, would have resulted in the financial statements being materially misstated. Effect: The District’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Financial reports generated by the accounting system may not provide an accurate reflection of the District’s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions Criteria: Proper financial closing and year-end reconciliation procedures should be in place to identify and adjust the financial records to ensure the financial statements are fairly stated. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded and reconciled in a timely manner. Response: The District acknowledges their responsibility for the financial statements and recording of the current year activity. Going forward, the District will verify that all activity is completely and accurately recorded in the financial records and reflected on the financial statements.

Finding #2023-002 – Lack of Financial Close Process and Delayed Accounting Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. Multiple grant claims were not filed throughout the year and large adjustments were needed to record revenues. Effect: Financial reporting from the District’s general ledger could be materially misstated. Delayed grant claims could cause cash flow issues. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Criteria: During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings. Grant claims should be reconciled to the general ledger and submitted throughout the year. Receivables should be recorded as of year end as needed. Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Reconcile payroll liabilities. Develop procedures to review and submit grant claims throughout the year and reconcile to the general ledger. Response: The District will work to establish procedures to reconcile accounts monthly and grant claims are reconciled and submitted throughout the year.