Audit 373430

FY End
2025-09-30
Total Expended
$1.37M
Findings
1
Programs
1
Year: 2025 Accepted: 2025-12-08

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1163623 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.126 MORTGAGE INSURANCE COOPERATIVE PROJECTS $1.37M Yes 1

Contacts

Name Title Type
JC6PHBRUJ4M9 Claude Brew Auditee
3202353727 Michael Gramm Auditor
No contacts on file

Finding Details

Criteria: Generally, a system of internal control includes the ability to understand and prepare the Cooperative's financial statements and related disclosures in accordance with accounting principles generally accepted in the United States of America (GAAP). Condition: Due to the limited size of the Cooperative's business staff and related resources available, the Cooperative has utilized the auditor to post adjusting journal entries and prepare the financial statements and related disclosures in accordance with accounting principles generally accepted in the United States of America. Questioned Costs: None. Context: The Cooperative has informed us that the small size and qualifications of its business office staff precludes the Cooperative from posting adjusting journal entries and preparing its own financial statements. Effect: The Cooperative utilizes the auditor to prepare GAAP based financial statements. Cause: Limited number of staff and hours available preclude the Cooperative from preparing the GAAP based financial statements. The Cooperative will continue to review auditor prepared financial statements. Repeat Finding: This finding was reported in the prior year as finding 2024-001. Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Current Status: Unresolved, the number of staff and qualifications of staff have not changed. The Cooperative is continuing to review the auditor prepared adjusting journal entries and financial statements. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.