Finding 1055963 (2023-001)

Identification as a repeat finding: This is not a repeat finding. Criteria: Internal controls over preparation and review of the financial statements should be in place to provide reasonable assurance that a misstatement in the financial statements would be prevented or detected. Statement of condition: Due to staffing and workload constraints, the organization did not prepare monthly financial statements. Thus, monthly financial statements were not reviewed by management or those charged with governance. Organization personnel do have the necessary expertise to prepare the financial statements in accordance with generally accepted accounting principles. Cause: Due to staffing and workload constraints, the organization did not prepare or review monthly financial statements. Effect: Since there was no preparation or review of monthly financial statements, the organization’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Questioned costs: There were no questioned costs. Views of responsible officials: Due to staffing and workload constraints, the organization did not prepare or review monthly financial statements. The organization accepts responsibility for the audited financial statements. Context: Since there was no preparation or review of monthly financial statements, the organization’s system of internal control may not prevent, detect, or correct misstatements in the financial statements. Recommendation: It is recommended that monthly financial statements be prepared and reviewed by management and those charged with governance.