Finding Text
Finding No. 2024-001: Significant Deficiency in Internal Control over Compliance is also considered a finding under Federal Award Findings and Questioned Costs. This finding is applicable to all federal programs. Criteria An accounting system and effective internal control environment should support the preparation of the financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”) and grant reports in accordance with Federal and State compliance requirements, including a timely financial close process at year end. Condition During 2024, the Organization’s accounting processes and internal controls over financial reporting did not meet timeliness standards. As a result, the financial close process including the grant schedule was not completed within the standard period. Cause The Organization experienced resource constraints. Effect The books and records were not closed and finalized until many months after year end. Context The Organization’s accounting processes and internal controls over financial reporting were not performed in a timely manner. Repeat Finding Yes. Recommendation We recommend that the Organization maintain an adequate level of appropriately trained and experienced personnel. This will help ensure that the accounting processes and internal controls over financial reporting will function in a timely manner, and that the financial close process will be complete, to meet identified standards. Management’s Response/View of Responsible Officials Management agrees with the auditors' findings. Management will meet timeliness standards in subsequent fiscal years.