Finding Text
Finding 2024-002: Adjustments to Financial Statements and Schedule of Expenditures of Federal Awards
Federal Program Affected: Developmental Disabilities Basic Support and Advocacy Grants
Compliance Requirement: Reporting
Questioned Costs: None
Condition and Cause: During our engagement, we posted several audit adjustments. Adjustments included entries to cash, prepaids, receivables, lease assets, lease liabilities, accounts payable, accrued liabilities, net assets, and the schedule of expenditures of federal awards (SEFA). The Organization does not have internal control processes to reconcile year-end balances.
Criteria and Effect: All balance sheet accounts and SEFA balances should be reconciled to supporting schedules. These adjustments were not identified as a result of the Organization’s existing internal controls and could have resulted in a material misstatement of the Organization’s financial statements and SEFA.
Repeat Finding from Prior Year: No
Recommendation: All significant balance sheet accounts, net assets and federal expenditures reported on the SEFA should be reconciled to supporting schedules and adjusted regularly. At a minimum, such reconciliations should be completed at year end.
Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.