Finding 1084861 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-11-20

AI Summary

  • Core Issue: The transition to three accounting systems led to duplicate records, complicating the audit process.
  • Impacted Requirements: Accurate and consistent accounting records are essential for reliable financial reporting.
  • Recommended Follow-up: Review and streamline accounting practices to eliminate duplication and enhance data reconciliation.

Finding Text

MATERIAL WEAKNESS Finding 2023-002: DUPLICATE OF ACCOUNTING RECORDS Repeat Finding from Prior Year No Condition The entity changed its accounting practices by transitioning from a single system to three separate systems. During this conversion, much of the accounting data was duplicated, making it challenging to audit the records effectively. Criteria Accounting records should be maintained accurately and consistently to facilitate reliable financial reporting and auditing processes Cause The transition to multiple accounting systems resulted in the duplication of entries, which has compromised the integrity of the financial records. Effect The duplication of accounting records increases the complexity of the audit process, creating a higher risk of errors and misstatements in the financial statements. This condition can hinder the entity’s ability to provide a clear and accurate representation of its financial position. Questioned Costs Not applicable Sampling Method Not applicable Recommendation The entity should review and streamline its accounting practices to eliminate duplication during the transition to the new systems. Implementing a more robust data reconciliation process will help ensure the accuracy of the financial records and facilitate a smoother audit process. Response and Views of Responsible Officials See Corrective Action Plan and Response to Findings.

Categories

Material Weakness Reporting

Other Findings in this Audit

  • 508418 2023-001
    Significant Deficiency Repeat
  • 508419 2023-002
    Material Weakness
  • 508420 2023-001
    Significant Deficiency Repeat
  • 508421 2023-002
    Material Weakness
  • 508422 2023-001
    Significant Deficiency Repeat
  • 508423 2023-002
    Material Weakness
  • 508424 2023-001
    Significant Deficiency Repeat
  • 508425 2023-002
    Material Weakness
  • 1084860 2023-001
    Significant Deficiency Repeat
  • 1084862 2023-001
    Significant Deficiency Repeat
  • 1084863 2023-002
    Material Weakness
  • 1084864 2023-001
    Significant Deficiency Repeat
  • 1084865 2023-002
    Material Weakness
  • 1084866 2023-001
    Significant Deficiency Repeat
  • 1084867 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.509 Formula Grants for Rural Areas and Tribal Transit Program $741,903
93.569 Community Services Block Grant $467,529
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $288,150
20.600 State and Community Highway Safety $2,145