Finding Text
Information on the Federal Program: U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No. 21.027, Grant Agreement Nos. SLFPR1965, 23-11-0264, and 23-11-304.
Criteria: SAS 115 requires communication, in writing, to management and those charged with governance, of material weaknesses identified in an audit.
Condition and context: A material audit adjustment was proposed that was not identified by the Center’s internal control system.
Cause: Management did not identify an adjustment necessary to present the financial statements in accordance with U.S. GAAP. A material audit adjustment was proposed to correct an account balance.
Effect or Potential Effect: The control deficiency is a material weakness that results in a material misstatement of the financial statements that was not prevented, or detected and corrected, on a timely basis.
Identification of a Repeat Finding: New finding.
Recommendation: Management should review the financial statements to ensure all necessary adjustments are made and balances are reflected accurately.
Responsible Official’s Response: In order to gain some comfort on the detailed processes, the Director of CFP, with the support from the Executive Committee of the Board, has appointed a certified CPA to review the last 2 years of monthly financial statements to build a routine for the existing staff so they may continue to conduct these reviews.