Audit 368201

During the audit of the consolidated financial statements, material misstatements were noted that were not initially identified by the Organization’s internal control, including misstatements affecting the schedule of expenditures of federal awards. Some of the more significant and sensitive adjustments were related to pharmacy inventory shortage, cash clearing, and pharmacy revenue reconciliation accounts. See findings 2025-002 and 2025-003. Additionally, the Organization does not have personnel with the required expertise to prepare or review the year-end consolidated financial statements and schedule of expenditures of federal awards to ensure there are not significant misstatements or omissions of disclosures, in accordance with generally accepted accounting principles. Effective internal controls include the Organization’s controls over the financial reporting and year-end close process and the recording of closing entries and non-routine transactions in accordance with accounting principles generally accepted in the United States of America.