Finding Text
Type of Finding: • Material Weakness in Internal Control over Financial Reporting • Significant Deficiency in Major Federal Program and Internal Control over Compliance 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 compliance requirements, including a robust financial close process at year end. Condition: In fiscal year 2024, Connecticut Veterans Legal Center, Inc.’s accounting processes and internal controls over financial reporting were not functioning timely to generate complete and accurate financial information. Numerous adjustments to the trial balances were made, necessitating repeated revisions to significant account reconciliations, and grant schedules. In addition, several accounting adjustments were needed throughout the audit process. Context: Connecticut Veterans Legal Center, Inc’s accounting processes and internal controls over financial reporting were not functioning properly. Effect: The books and records required various adjustments to properly reflect materially correct financial statements. Cause: Connecticut Veterans Legal Center, Inc. did not have the necessary assistance in the accounting department. Repeat Finding: No Recommendation: We recommend that Connecticut Veterans Legal Center, Inc. maintain an adequate level of monitoring and financial statement review monthly. This will help ensure that the accounting processes and internal controls over financial reporting will function properly, and that the financial close process will be complete, accurate, and timely. Management’s Response/View of Responsible Officials: Management concurs with the finding. See separate corrective action plan.