Finding 1081720 (2024-001)

Internal Controls over Financial Reporting Condition During our audit of the consolidated financial statements as of June 30, 2024, management notified Forvis Mazars that there was an error in the presentation of certain contracts in fiscal year 2023 as they related to ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”), resulting in the revision of the June 30, 2023 consolidated financial statements. We noted that the Organization reviewed its contracts and identified the error, however controls in place at the time were unable to identify this error. Criteria Management is responsible for establishing the internal control system in the Organization and management is responsible for monitoring and ensuring established internal controls over the Organization are properly executed. Effect This weakness in controls has the potential for misclassification of revenue contracts to exist and not be detected. Recommendation We recommend management implements controls to review contracts in accordance with ASC 606 on a periodic basis to ensure adherence with U.S. GAAP. Views of Responsible Officials Management agrees with the finding. See Corrective Action Plan.