Finding Text
Condition: Accounting records were not completely closed and reconciled over six months after the end of the fiscal year.
Criteria: In a properly functioning internal control environment, accounting records are reconciled and closed within a reasonable time after the end of each accounting period.
Cause: The audit was not completed as of the submission due date.
Effect: The 2023 financial statement audit and Single Audit were not filed timely with funding agencies and the Federal Audit Clearinghouse. Moreover, if records are not timely closed, management and those charged with governance may be making decisions based on incomplete information.
Recomendation: The Organization should allocate additional resources with suitable skills, knowledge, and expertise to assist with the accounting and financial close and reporting process. The Organization should implement or modify current procedures to ensure accounting records are reonciled and financial statements are completed timely and within the deadlines established by funding agencies.
Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.