Audit 329220

Finding 2023-001 - Material Adjustments Criteria: Management is responsible for reconciling the accounts at end of year and ensuring accounting records are kept in accordance with generally accepted accounting principles (GAAP). Condition: There were insufficient internal controls over financial reporting requiring material audit adjustments during the audit to prevent the consolidated financial statements from being materially misstated. Cause: Due to staffing turnover and shortages all required entries needed were not recorded and management relied on auditors to propose entries after audit procedures. This is a repeat finding.Effect or potential effect: Most adjustments were due to staffing issues or lack of knowledge of GAAP with new staffing to properly make the required adjustments. The risk with this condition is that necessary adjustment to the consolidated financial statements to record material misstatements may be missed, and there is no control in place to detect and correct this condition. Recommendation: The Organization and accounting industry in general have had some significant staffing issues over the past few years that have led to the issues noted. The Organization needs to:  Assess accounting staff to ensure you have the correct number for size of Organization and proper skill set.  Ensure processes and internal controls are documented and staff has appropriate training. Views of responsible officials: See attached.

Finding 2023-002 - Federal Audit Clearinghouse Filing Criteria: Management is responsible for submitting the audited financial statements with the Federal Audit Clearinghouse which is due nine months after the end of the audit period or 30 calendar days after the entity received the auditors report . Condition: There were insufficient internal controls over financial reporting requiring material audit adjustments during the audit to prevent the consolidated financial statements from having the audit completed timely. Cause: Due to staffing turnover and shortages all required entries needed were not recorded and management relied on auditors to propose entries after audit procedures which caused delay in completing the audit. Effect or potential effect: The filing with Federal Audit Clearinghouse will be completed after the 9 months as required and the Organization will not be considered a low risk auditee for the next two years. Recommendation: The Organization and accounting industry in general have had some significant staffing issues over the past few years that have led to the issues noted. The Organization needs to:  Assess accounting staff to ensure you have the correct number for size of Organization and proper skill set.  Ensure processes and internal controls are documented and staff has appropriate training.  This will ensure the audit is completed timely and Federal Audit Clearinghouse submission is also done timely. Views of responsible officials: See attached.

Finding 2023-003 - Prior Period Restatement Criteria: Management is responsible for reporting transactions in the proper accounting period. Condition: There were insufficient internal controls or knowledge of accrual accounting to ensure transactions reported in proper period. Cause: Due to staffing turnover and shortages one contract was signed in 2022 but the full amount of the liability was not recorded in accounts payable and property and equipment. Effect or potential effect: The 2022 consolidated financial statements were not materially correct. Recommendation: The Organization and accounting industry in general have had some significant staffing issues over the past few years that have led to the issues noted. The Organization needs to:  Assess accounting staff to ensure you have the correct number for size of Organization and proper skill set.  Ensure processes and internal controls are documented and staff has appropriate training. Views of responsible officials: See attached.

Finding 2023-001 - Material Adjustments Criteria: Management is responsible for reconciling the accounts at end of year and ensuring accounting records are kept in accordance with generally accepted accounting principles (GAAP). Condition: There were insufficient internal controls over financial reporting requiring material audit adjustments during the audit to prevent the consolidated financial statements from being materially misstated. Cause: Due to staffing turnover and shortages all required entries needed were not recorded and management relied on auditors to propose entries after audit procedures. This is a repeat finding.Effect or potential effect: Most adjustments were due to staffing issues or lack of knowledge of GAAP with new staffing to properly make the required adjustments. The risk with this condition is that necessary adjustment to the consolidated financial statements to record material misstatements may be missed, and there is no control in place to detect and correct this condition. Recommendation: The Organization and accounting industry in general have had some significant staffing issues over the past few years that have led to the issues noted. The Organization needs to:  Assess accounting staff to ensure you have the correct number for size of Organization and proper skill set.  Ensure processes and internal controls are documented and staff has appropriate training. Views of responsible officials: See attached.

Finding 2023-002 - Federal Audit Clearinghouse Filing Criteria: Management is responsible for submitting the audited financial statements with the Federal Audit Clearinghouse which is due nine months after the end of the audit period or 30 calendar days after the entity received the auditors report . Condition: There were insufficient internal controls over financial reporting requiring material audit adjustments during the audit to prevent the consolidated financial statements from having the audit completed timely. Cause: Due to staffing turnover and shortages all required entries needed were not recorded and management relied on auditors to propose entries after audit procedures which caused delay in completing the audit. Effect or potential effect: The filing with Federal Audit Clearinghouse will be completed after the 9 months as required and the Organization will not be considered a low risk auditee for the next two years. Recommendation: The Organization and accounting industry in general have had some significant staffing issues over the past few years that have led to the issues noted. The Organization needs to:  Assess accounting staff to ensure you have the correct number for size of Organization and proper skill set.  Ensure processes and internal controls are documented and staff has appropriate training.  This will ensure the audit is completed timely and Federal Audit Clearinghouse submission is also done timely. Views of responsible officials: See attached.

Finding 2023-003 - Prior Period Restatement Criteria: Management is responsible for reporting transactions in the proper accounting period. Condition: There were insufficient internal controls or knowledge of accrual accounting to ensure transactions reported in proper period. Cause: Due to staffing turnover and shortages one contract was signed in 2022 but the full amount of the liability was not recorded in accounts payable and property and equipment. Effect or potential effect: The 2022 consolidated financial statements were not materially correct. Recommendation: The Organization and accounting industry in general have had some significant staffing issues over the past few years that have led to the issues noted. The Organization needs to:  Assess accounting staff to ensure you have the correct number for size of Organization and proper skill set.  Ensure processes and internal controls are documented and staff has appropriate training. Views of responsible officials: See attached.