Finding 1148508 (2024-002)

Finding: Item 2024-002 – Prior Period Adjustment- Material Weakness Criteria: Management is responsible for establishing and maintaining effective internal control over financial reporting. Condition/context: The Alliance’s financial statements required adjustments applicable to the prior year to be in conformity with accounting principles generally accepted in the United States of America (GAAP). The adjustments to the prior year were related to an over accrual of paid time off for CVHC designated employees that are not eligible. Cause: The Alliance failed to exclude ineligible employees from the accrued PTO calculation and did not identify certain necessary adjustments required to present the financial statements in accordance with GAAP. Effect or possible effect: An adjusting journal entry was proposed during the financial statement audit. Questioned cost: Not applicable. Repeat Finding: Not applicable Recommendation: Management should continue to monitor month-end and year-end closing procedures to ensure controls in place are sufficient to ensure that financial statements are prepared in accordance with GAAP. View of responsible officials: Management’s response is reported in “Corrective Action Plan” at the end of this report.