Finding: 2024-001 Oversight of Financial Reporting Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting and timely performance of associated financial reporting functions. Condition: During the current year audit there was staff turnover and a new accounting system was installed. This contributed to a situation where: 1. Numerous correcting journal entries were necessary to arrive at the adjusted financial statement amounts. 2. As discussed in finding 2024-002 the financial statement audit was not timely completed. Cause: The Organization has had staffing issues during the year and numerous positions were either unfilled or there was turnover resulting in inefficient operations additionally the new accounting system resulted in unexpected reporting problems. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2024. Recommendation: The Organization needs to devote more resources to the finance department so that adequate staffing levels can be maintained by qualified individuals. Views of Responsible Officials: See Attachment A.
Finding: 2024-002 Timely Single Audit Submission Criteria: Uniform Guidance requires that the Federal Audit Clearinghouse (FAC) receive the single audit within the earlier of nine-months from year end or 30 days upon receipt of the final audit. Condition: Due to staffing issues and unforeseen circumstances the FAC did not timely received the audited financial statements. Cause: The Organization has had staffing issues during the year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2024. Questioned Costs: None reported Context/Sampling: Delay in submission to the FAC is due to personnel staffing issues. Repeat Finding from Prior Year: No Recommendation: The Organization needs to devote more resources to the finance department so that adequate staffing levels can be maintained by qualified individuals. Views of Responsible Officials: See Attachment A.