Audit 393580

In connection with the audit of Bradford County Action, Inc.’s financial statements, like most smaller not-for-profit organizations, management has requested that its auditors assist in the drafting of the schedule of expenditures of federal awards. Effect: Bradford County Action, Inc.’s management has determined that it is more cost-beneficial to utilize the services of its auditors to assist in drafting the schedule of expenditures of federal awards, as opposed to hiring a professional accountant trained in such matters. Cause: While Bradford County Action, Inc.’s internal accounting personnel have the ability to interpret and understand its schedule of expenditures of federal awards, they do not have sufficient experience in preparing that schedule in accordance with generally accepted accounting principles. Population and Items Tested: N/A; finding is based on the understanding and review of the internal control system. Auditors’ Recommendation: Management should prepare its financial statements and related notes, including the schedule of expenditures of federal awards. Bradford County Action, Inc.’s planned corrective action is in its corrective action plan at the end of this report.