Finding 1136973 (2024-002)

2024-002 Finding: Preparation of Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Federal Program Affected: ALN #21.027 Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: We were requested to draft the audited financial statements, SEFA and related footnote disclosures as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation of the District’s statements, SEFA and footnotes, and the responsibility of the auditor to determine the fairness of the presentation of those statements. From a practical standpoint, we do both for the District at the same time in connection with our audit. This is not unusual for districts of your size. Criteria and Effect: It is our responsibility to inform the Board that this deficiency could result in a material misstatement to the financial statements or SEFA that would have not been prevented or detected by the District’s management. Repeat Finding from Prior Year: Yes, prior year finding #2023-001. Recommendation: As in prior years, we have instructed management to review a draft of the auditor-prepared financial statements and SEFA in detail for their accuracy. We have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in the District’s statements. We are satisfied the appropriate steps have been taken to provide the District with complete financial statements and SEFA. It is the District’s responsibility to make the ultimate decision to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.