Audit 358143

2024-001: Audit Adjustments and Financial Reporting Process Material Weakness Criteria-Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition-During the audit, we noted that while account reconciliations for 2024 were completed, they were often not performed on a timely basis. Additionally, although there was a reduction in the number and volume of audit adjustments compared to the prior year, the adjustments made were still material in the aggregate. Cause-The Organization continued to experience turnover within the Finance Department. Responsibilities for key procedures, including bank and other account reconciliations, were not completed consistently and did not include a sufficient detailed review process. Effect-The Organization has made notable progress compared to the prior year, including a reduction in the number of audit adjustments and completion of account reconciliations. However, because many reconciliations were completed after year-end, there remains some risk that financial misstatements could go undetected during the year. As a result, the Board of Directors and management may not have had access to fully accurate financial information at all times, though year-end reporting was ultimately accurate and complete following audit adjustments. Recommendation-We acknowledge that the Organization has implemented more timely reconciliation and review procedures going forward, which is a positive step. To build on this progress, we recommend formalizing a cross-training and transition plan to ensure continuity when turnover occurs. Additionally, continued oversight by management is essential to maintain adherence to internal reporting policies and to ensure that reconciliations and reviews remain timely and effective. Auditee's comments and reponse-Management has designed and implemented an improved month end procedure and related review process, it will continue documenting its training program and developing team members, and more fully utilizing the accounting modules in its Enterprise Resource Planning system to add more system-based controls. Responsible party for corrective action: Jennifer Anderson, Interim Chief Financial Officer Repeat Finding: Yes

2024-001: Audit Adjustments and Financial Reporting Process Material Weakness Criteria-Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Condition-During the audit, we noted that while account reconciliations for 2024 were completed, they were often not performed on a timely basis. Additionally, although there was a reduction in the number and volume of audit adjustments compared to the prior year, the adjustments made were still material in the aggregate. Cause-The Organization continued to experience turnover within the Finance Department. Responsibilities for key procedures, including bank and other account reconciliations, were not completed consistently and did not include a sufficient detailed review process. Effect-The Organization has made notable progress compared to the prior year, including a reduction in the number of audit adjustments and completion of account reconciliations. However, because many reconciliations were completed after year-end, there remains some risk that financial misstatements could go undetected during the year. As a result, the Board of Directors and management may not have had access to fully accurate financial information at all times, though year-end reporting was ultimately accurate and complete following audit adjustments. Recommendation-We acknowledge that the Organization has implemented more timely reconciliation and review procedures going forward, which is a positive step. To build on this progress, we recommend formalizing a cross-training and transition plan to ensure continuity when turnover occurs. Additionally, continued oversight by management is essential to maintain adherence to internal reporting policies and to ensure that reconciliations and reviews remain timely and effective. Auditee's comments and reponse-Management has designed and implemented an improved month end procedure and related review process, it will continue documenting its training program and developing team members, and more fully utilizing the accounting modules in its Enterprise Resource Planning system to add more system-based controls. Responsible party for corrective action: Jennifer Anderson, Interim Chief Financial Officer Repeat Finding: Yes