Audit 320453

1) Federal program and specific federal award Identification: Financial Statements and ALN #21.024 2) Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. 3) Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. 4) Cause: The Organization experienced a change in outside accounting services during the year and had a gap in services for part of the year. As a result, certain accounting processes and reconciliations were behind schedule. 5) Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. 6) Questioned costs: No questioned costs were identified. 7) Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. 8) Repeated audit finding: This is not a repeat finding. 9) We recommend that reconciliations of loans receivable be completed on a monthly basis by the outside accounting service provider. The reconciliations should be reviewed and approved by management. 10) Views of responsible officials at auditee: We agree with the finding and recommendation regarding reconciliation of the loan receivable accounts. Procedures have been put into place beginning September 1, 2024 for reconciliations to be submitted to management for review and approval. In addition, a meeting will be held with the outside accounting services team to review all lending activity for proper reporting.

1) Federal program and specific federal award Identification: Financial Statements and ALN #21.024 2) Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. 3) Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. 4) Cause: The Organization experienced a change in outside accounting services during the year and had a gap in services for part of the year. As a result, certain accounting processes and reconciliations were behind schedule. 5) Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. 6) Questioned costs: No questioned costs were identified. 7) Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. 8) Repeated audit finding: This is not a repeat finding. 9) We recommend that reconciliations of loans receivable be completed on a monthly basis by the outside accounting service provider. The reconciliations should be reviewed and approved by management. 10) Views of responsible officials at auditee: We agree with the finding and recommendation regarding reconciliation of the loan receivable accounts. Procedures have been put into place beginning September 1, 2024 for reconciliations to be submitted to management for review and approval. In addition, a meeting will be held with the outside accounting services team to review all lending activity for proper reporting.

1) Federal program and specific federal award Identification: Financial Statements and ALN #21.024 2) Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. 3) Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. 4) Cause: The Organization experienced a change in outside accounting services during the year and had a gap in services for part of the year. As a result, certain accounting processes and reconciliations were behind schedule. 5) Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. 6) Questioned costs: No questioned costs were identified. 7) Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. 8) Repeated audit finding: This is not a repeat finding. 9) We recommend that reconciliations of loans receivable be completed on a monthly basis by the outside accounting service provider. The reconciliations should be reviewed and approved by management. 10) Views of responsible officials at auditee: We agree with the finding and recommendation regarding reconciliation of the loan receivable accounts. Procedures have been put into place beginning September 1, 2024 for reconciliations to be submitted to management for review and approval. In addition, a meeting will be held with the outside accounting services team to review all lending activity for proper reporting.

1) Federal program and specific federal award Identification: Financial Statements and ALN #21.024 2) Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. 3) Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. 4) Cause: The Organization experienced a change in outside accounting services during the year and had a gap in services for part of the year. As a result, certain accounting processes and reconciliations were behind schedule. 5) Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. 6) Questioned costs: No questioned costs were identified. 7) Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. 8) Repeated audit finding: This is not a repeat finding. 9) We recommend that reconciliations of loans receivable be completed on a monthly basis by the outside accounting service provider. The reconciliations should be reviewed and approved by management. 10) Views of responsible officials at auditee: We agree with the finding and recommendation regarding reconciliation of the loan receivable accounts. Procedures have been put into place beginning September 1, 2024 for reconciliations to be submitted to management for review and approval. In addition, a meeting will be held with the outside accounting services team to review all lending activity for proper reporting.