Finding Text
Condition - The financial statements for the year ended December 31, 2023 were restated during the current year to properly record insurance claim proceeds as revenue and the write-off of buildings and improvements. Criteria - Effective internal control over the financial reporting process is necessary to prevent material restatements of the financial statements. Cause - During the year, it was discovered the insurance claim proceeds should be recorded as revenue for the addition of roof replacements. Effect - The 2023 financial statements were required to be restated. Recommendation - The Partnership should thoroughly review insurance claim activity for potential asset additions before posting them to the accounting records. Auditee’s comments and response - Management will review any future entries of this nature with care.