Finding 1161496 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2025-10-28

AI Summary

  • Core Issue: The cash balance on the balance sheet is understated due to an unrecorded account.
  • Impacted Requirements: Financial statements are incomplete and do not accurately show all cash assets.
  • Recommended Follow-Up: Ensure all accounts are properly recorded to prevent future misstatements.

Finding Text

Effect: The cash balance reported on the balance sheet is understated by the ending balance of the unrecorded account. The amount is considered material based on the auditors’ judgment. Financial statements are incomplete and do not reflect all of the Organization’s cash assets. Financial records that are incomplete increases a risk that material misstatements in financial statements will not be prevented or detected in a timely manner.

Corrective Action Plan

Recommendation: We recommend the Organization immediately open a general ledger account for the unrecorded bank account and implement and enforce a formal policy requiring all bank account to be approved by the Board of Directors and recorded in the general ledger immediately upon opening.

Categories

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Programs in Audit

ALN Program Name Expenditures
93.217 FAMILY PLANNING SERVICES $9.50M