Finding Text
2023-001 Material Weakness in Internal Control over Financial Reporting
Condition: The financial closing process for the year ended December 31, 2023 extended through November 2024. During this extended period, there were multiple adjusting entries
made to the initial working trial balance, reflecting both late client adjustments and certain errors noted during the audit. These adjusting entries included changes that impacted amounts reported
for grants receivable, other current assets, accounts payable, deferred revenues, and the related revenues and expenses.
Criteria: Amputee Coalition is required to produce timely financial statements that are free of material misstatements.
Cause: Amputee Coalition has experienced significant turnover in its accounting and senior management staff over the last several years.
Effect: Amputee Coalition’s late completion of the closing process and financial statements resulted in preliminary financial statements that required significant late adjustments.
Recommendation: Amputee Coalition should identify and implement changes in the financial accounting and reporting process to ensure the working trial balance and financial statements are
complete and finalized in a more timely manner, at a minimum within four to six months of year end.
Management Response: See Section V Corrective Action Plan