Finding Text
Condition: The Town had a number of previous year audit adjustments that were not posted to the fiscal year 2022 general ledger. Such adjustments relate to errors (both material and immaterial) that relate to prior activity that would cause differences in amounts reported in the financial statements and related reconciliations that went undiscovered throughout the fiscal year. Criteria: In accordance with Uniform Guidance, the Town must maintain an adequate system of internal control over financial reporting in order to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Cause: Management did not record the adjustments proposed and accepted from the previous year audits. Management did not reconcile the ending trial balance to the audited financial statements. Because these items were not adjusted, new errors may not be identified and information provided throughout the year may be materially incorrect. Effect: The Town had significant audit adjustments for the year ended June 30, 2022 that relate to prior year activity. Additionally, the interim financial information produced by the Town may be inaccurate. Questioned Costs: Unknown.