Finding 1078003 (2023-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-10-02
Audit: 323608
Organization: Mexico Water District (ME)
Auditor: Hmv LLC

AI Summary

  • Core Issue: Many balance sheet accounts had incorrect beginning balances due to unrecorded 2022 audit adjustments.
  • Impacted Requirements: The accuracy of financial reporting for 2023 is compromised due to these material misstatements.
  • Recommended Follow-Up: Ensure all audit adjustments are recorded in the accounting system to prevent future discrepancies.

Finding Text

When completing our audit testing, it was determined that the beginning balances for a significant number of balance sheet accounts were incorrect and materially misstated. The material misstatements in the beginning balances were caused by the 2022 audit adjusting journal entries not being recorded in the accounting system. A properly designed and functioning accounting system has no materially misstated balances. A significant number of balance sheet accounts were materially misstated for all of 2023.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 501558 2023-001
    Material Weakness
  • 501559 2023-002
    Significant Deficiency
  • 501560 2023-003
    Significant Deficiency
  • 501561 2023-001
    Material Weakness
  • 501562 2023-002
    Significant Deficiency
  • 501563 2023-003
    Significant Deficiency
  • 1078000 2023-001
    Material Weakness
  • 1078001 2023-002
    Significant Deficiency
  • 1078002 2023-003
    Significant Deficiency
  • 1078004 2023-002
    Significant Deficiency
  • 1078005 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.760 Water and Waste Disposal Systems for Rural Communities $472,346