Audit 399126

Finding 2025 – 001 Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements on grant activities. Criteria: A good system of internal controls would provide for accurate recording of adjusted grant receivables and revenues for all Organization grant accounts prior to audit fieldwork. Cause: Year-end entries related to grant receivables and revenues were required in order to accurately present the Organization’s financial statements. Effect: The Organization’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of all general ledger balances, including grant activity. This review and adjustment will aid in the appropriate budgeting and management of the Organization’s financial activities and resources related to grant programs. Corrective Action Plan: The Fiscal Manager, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork.