Finding Text
Finding: 2023-001 Oversight of Financial Reporting
Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting and timely performance of associated financial reporting functions.
Condition: During the current year audit it was determined that:
1. Numerous correcting journal entries were necessary to arrive at the adjusted financial statement amounts.
2. As discussed in finding 2023-002 the financial statement audit was not timely completed.
Cause: The Organization has had staffing issues during the year and numerous positions were either unfilled or there was turnover resulting in inefficient operations.
Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2023.
Recommendation: The Organization needs to devote more resources to the finance department so that adequate staffing levels can be maintained by qualified individuals.
Views of Responsible Officials: See Attachment A.