Finding Text
The financial statements and certain key underlying schedules for fiscal year 2023 were not fully reconciled and available for audit purposes until more than six (6) months after the fiscal year end. In order to maintain effective internal controls over financial reporting it is essential that financial statements be closed in a timely manner once the fiscal year ends. This condition was due to several factors including the termination of the prior accounting firm providing accounting and financial reporting services without a transition plan in place for the current accountant. As such, it appears that a lot of time was needed to learn the key accounting processes, accounting software and specific accounting and financial reporting issues which delayed the process of reconciling and closing the accounting records for fiscal year 2022. The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware.