Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Criteria or specific requirement: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports accurate external financial reporting. We are required to give consideration to IRP?s ability to prepare external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition: IRP does not have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with accounting principles generally accepted in the United States of America (GAAP). Effect: IRP engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, we must inform those charged with governance that this must be considered a material weakness in internal control over financial reporting since the year-end external financial statement preparation cannot be performed in-house. Cause: Such preparation would require the in-house ability to maintain appropriate technical knowledge, including the ability to research current and changing accounting standards as well as unique industry considerations. Recommendation: We recommend IRP review and consider enhancements to the external financial reporting procedures and controls in place to address the preparation and review of external year-end financial statements. Views of responsible officials and planned corrective actions: Management concurs with the above finding and, accordingly, has engaged the auditors to assist with the preparation of the 2022 year-end external financial statements. Management also concurs with the above recommendation and is currently reviewing the procedures and controls in place to address the preparation and review of external year-end financial statements and will revise and enhance as warranted.
Criteria or specific requirement: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports accurate external financial reporting. We are required to give consideration to IRP?s ability to prepare external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition: IRP does not have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with accounting principles generally accepted in the United States of America (GAAP). Effect: IRP engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, we must inform those charged with governance that this must be considered a material weakness in internal control over financial reporting since the year-end external financial statement preparation cannot be performed in-house. Cause: Such preparation would require the in-house ability to maintain appropriate technical knowledge, including the ability to research current and changing accounting standards as well as unique industry considerations. Recommendation: We recommend IRP review and consider enhancements to the external financial reporting procedures and controls in place to address the preparation and review of external year-end financial statements. Views of responsible officials and planned corrective actions: Management concurs with the above finding and, accordingly, has engaged the auditors to assist with the preparation of the 2022 year-end external financial statements. Management also concurs with the above recommendation and is currently reviewing the procedures and controls in place to address the preparation and review of external year-end financial statements and will revise and enhance as warranted.