Finding Text
Finding: Item 2024-003 – U.S. GAAP Accounting- Material Weakness
Criteria: The Organization's financial statements should be reported in accordance with U.S. GAAP. Condition/Context: Reconciliations for payroll liabilities (taxes and fringe benefits) were not completed throughout the fiscal year. Adjusting entries were recorded during the audit for the financial statements to be in accordance with U.S. GAAP. Cause: Internal control policies and procedures were not folowed or enforced. Effect or potential effect: The Organization was not able to generate interim and year-end financial statements in accordance with U.S. GAAP. Additionally, failure to reconcile the simplified employee pension liability may result in noncomplance with the plan and penalties. Questioned cost: Not applicable. Repeat Finding: Not applicable Recommendation: We recommend that reconciliations and accruals be prepared and reviewed on a timely basis, monthly at a minimum. View of responsible officials: Management’s response is reported in “Corrective Action Plan” at the end of this report.