Finding Text
Condition and Criteria: Misstatements were identified relating to retained earnings, accrued expenses and deferred revenue for which we proposed adjusting journal entries. These adjustments had not been identified by the Organization’s internal control. Cause: The Organization had several changes of personnel in the accounting department. Effect: The Organization’s reported year-end balances were not accurate. Auditor’s Recommendation: The Organization should retain the services of someone with the proper skill, knowledge and experience to ensure that the Organization’s reported numbers are accurate at all times. Views of Responsible Officials and Planned Corrective Action: While Quincy Asian Resources, Inc. concurs with the ultimate outcome identified in the finding, we want to emphasize our review indicates all transactions were handled with appropriate intent. The identified adjustments were primarily due to timing of personnel transitions on our accounting department. To further strengthen our financial reporting processes, we have subsequently hired a new controller with extensive nonprofit accounting experience. This addition to our team will help ensure continued accuracy in financial reporting while maintaining strong internal controls.