Audit 39837

Finding 2022-001: Material Weakness ? Internal Controls over Financial Reporting Criteria: Management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements. Condition: During the audit it was noted that the Organization had not performed timely reconciliations of numerous accounts which led to the need for numerous journal entries and caused a significant delay in the completion of the audit. Cause: The Organization has internal control processes in place for the reconciliation of account balances, as well as processes in place for the review of such reconciliations. However, there was a breakdown during these internal control processes where the review that took place did not identify the misstatements within the accounts prior to the start of the audit. Effect or Potential Effect: Without a strong review process in place, there is an increased risk that misstatements will not be detected and may lead to future significant deficiencies or material weaknesses. Recommendation: It is recommended that the Organization reconcile all account balances monthly to ensure the supporting schedules agree to what is recorded in the accounting system. Auditor also recommends that the Organization closes its books timely after year end and does not schedule the audit to commence until the accounts have been properly reconciled and the books have been closed.

Finding 2022-001: Material Weakness ? Internal Controls over Financial Reporting Criteria: Management is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements. Condition: During the audit it was noted that the Organization had not performed timely reconciliations of numerous accounts which led to the need for numerous journal entries and caused a significant delay in the completion of the audit. Cause: The Organization has internal control processes in place for the reconciliation of account balances, as well as processes in place for the review of such reconciliations. However, there was a breakdown during these internal control processes where the review that took place did not identify the misstatements within the accounts prior to the start of the audit. Effect or Potential Effect: Without a strong review process in place, there is an increased risk that misstatements will not be detected and may lead to future significant deficiencies or material weaknesses. Recommendation: It is recommended that the Organization reconcile all account balances monthly to ensure the supporting schedules agree to what is recorded in the accounting system. Auditor also recommends that the Organization closes its books timely after year end and does not schedule the audit to commence until the accounts have been properly reconciled and the books have been closed.