Audit 410760

2025-001 Supervisory Review of Accounting Function Criteria: Accurate and timely records are required for GAAP and grant reporting. Condition: The Supervisory review of various accounting functions was lacking. We noted the following during the audit: • There is a procedure to close the books monthly by a certain date, even if certain subcontractors have not submitted invoices for that time period. While this procedure may be acceptable for the interim period, at September 30, all subcontractor invoices must be recognized. We made an adjustment of approximately $559,000 primarily for August and September subcontractor invoices that had not been accrued. • The “Profit and Loss by Job” report did not agree to the MFP grant. Cause: There were no written procedures to require account reconciliations and the supervisory review of those reconciliations. Effect: In order for the financial statements to be fairly stated, the auditors made adjustments, some of which were material. Recommendation: We recommend that management develop and implement procedure to perform and review all account reconciliations on a timely basis.

2025-002 Late Filing of Form SF-SAC Data Collection Form Criteria: The Uniform Guidance requires that Form SF-SAC be filed no later than nine months after year end, in this case by June 30, 2026. Condition: The Form SF-SAC will be filed late for the year ended September 30, 2025. Cause: Turnover of accounting staff. Effect: The Association is not in compliance with Uniform Guidance requirements. Recommendation: Procedures should be developed and implemented to ensure timely filings.