Finding 1080931 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-11-01

AI Summary

  • Core Issue: Significant errors were found that should have been caught during the financial close process, affecting multiple accounts.
  • Impacted Requirements: Adjustments were necessary for fixed assets, depreciation, payroll, expenses, and government grants, leading to major changes in financial statements.
  • Recommended Follow-Up: Review and enhance the financial close process to prevent similar errors in the future and ensure accurate reporting.

Finding Text

During the audit, there were several errors which would be expected to have been discovered during the financial close process or review of the financial reports. Adjustments were needed to correct improperly expensed fixed assets and correct depreciation expense, correct rent and other expenses and prepaid expenses, correct payroll and other benefits expenses and accruals, and correct government grants revenue and the related refundable advance balances. As a result, net adjustments were recorded which decreased property and equipment by approximately $7,000,000, increased accounts payable and accrued expenses by approximately $2,100,000, decreased refundable advances by $25,300,000, and increased government grant revenue and various expenses by approximately $25,300,000. There were also adjustments to correct the classification of various expenses and liabilities.

Categories

Equipment & Real Property Management

Other Findings in this Audit

  • 504489 2023-001
    Material Weakness Repeat
  • 504490 2023-002
    Material Weakness Repeat
  • 504491 2023-003
    Material Weakness Repeat
  • 504492 2023-004
    Material Weakness
  • 1080932 2023-002
    Material Weakness Repeat
  • 1080933 2023-003
    Material Weakness Repeat
  • 1080934 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
90.500 International Broadcasting Independent Grantee Organizations $122.58M