Finding 1094108 (2024-002)

Significant Deficiency Criteria – The Organization’s management has the responsibility to record, process, and summarize the accounting data to ensure that users of the data have complete and accurate accounting records. The Organization is also required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). Condition – As a result of the current year auditing procedures, misstatements were identified that were not previously identified by the Organization’s internal controls over financial reporting. The entries include mainly adjustments to grants receivable, accrued payroll liabilities, and lease liabilities. Context – Management is responsible for the recording, processing, summarizing, and review of the accounting data (i.e. maintaining books and records) and for making the necessary adjustments to those books and records before the audit and preparation of the financial statements. Cause – The Organization needs a more thorough review processes for its year-end financial statements to ensure accuracy and completeness. Effect – Members of management using the Organization’s internal books and records may not have complete and accurate information at year-end if the year-end financial statements are not sufficiently reviewed. Repeat Finding – This was partially corrected. See finding 2023-002. Recommendation – We recommend that the Organization improve its procedures to review its internal books and records, make all required adjustments at year-end, and ensure that the information taken from the accounting records is complete and accurate. Additional resources should be utilized as necessary to ensure year-end account balances are adjusted to be in accordance with U.S. GAAP.