Finding Text
Finding 2024-001: Internal Control Over Financial Reporting
Criteria and Condition: Internal controls over financial reporting should be designed and in
place to prevent, detect, and correct material misstatement in the financial statements in a
timely manner. The internal controls were unable to prevent, detect, and correct several material
errors in the preparation of the financial statements as of and for the year ended June 30, 2024,
in a timely manner. This resulted in resulted in numerous significant adjustments related to
assets, liabilities, net assets, revenue, and expenses.
Cause: Existing internal controls over financial reporting require that management perform
meaningful analysis of internal records and general ledger accounts on a regular basis.
Management is not performing a meaningful analysis of internal records and the general ledger,
which results in financial statements that contain a significant number of material errors.
Questioned Costs: None
Recommendations: We recommend that management develop formal policies and procedures
to identify material misstatements, which should include performing meaningful analysis of
internal records and general ledger accounts on a regular basis. This will allow management to
timely identify unusual trends in internal records and general ledger accounts that could be
indicative of errors that cause the Center’s financial statements to be misstated.
Views of Responsible Officials and Planned Corrective Actions: Management is taking
steps to improve monitoring of the financial reporting process and to ensure meaningful analysis
of financial records is occurring on a regular basis. Management has been identifying areas of
improvement within the finance department and is in the process of implementing new
procedures that will improve the accuracy and timeliness of financial reporting.