Audit 368709

Condition - The Agency had a lack of segregation of duties during the year ended December 31, 2024. Criteria - internal control procedures require that accounting functions should be segregated so that one person does not control more than one aspect of an accounting transaction. And when there are duties that are not segregated, compensating controls should be in place to overcome the risks related to a lack of segregation of duties. Cause - During 2024, the Agency had a limited number of staff in the accounting department to be able to keep proper segregation of duties. Effect - The Agency could not maintain segregation of duties.

Condition - The Agency did not have an internal control policy in place over annual financial statement reporting that would enable management to prepare its annual financial statements including the Schedule of Expenditures of Federal Awards (SEFA) and ensure related footnote disclosures are complete and presented in accordance with the U.S. generally accepted accounting principles (GAAP). Criteria - Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with GAAP. Effect - The potential exists that a material misstatement of the annual financial statements and SEFA could occur and not be prevented or detected by the Agency’s internal controls. Cause - The Agency relied on the audit firm to prepare the annual financial statements. However, they have reviewed and approved the annual financial statements and related footnote disclosures.

Condition - Several adjustments were required during the audit process for the financial statement to be in accordance with GAAP Criteria - Adequate internal controls over financial reporting requires close review of all balances to ensure they are in accordance with GAAP. Cause - The deficiency is the result of the lack of reconciliations of general ledger accounts in a timely and accurate manner and in particular cash accounts. During the last half of the fiscal year, the Agency did not perform complete bank reconciliations for all of its bank accounts. Effect - Reconciliation of accounts are a necessary control to prevent or detect misappropriation of cash or misstatements in financial reporting.