Finding 1177762 (2023-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-03-10

AI Summary

  • Core Issue: The ROE lacks adequate internal controls over financial reporting, particularly in preparing cash basis financial statements.
  • Impacted Requirements: This deficiency increases the risk of misstatements and errors in financial disclosures.
  • Recommended Follow-Up: Ensure the inclusion of the Schedule of Expenditures of Federal Awards in the financial statements for the upcoming single audit.

Finding Text

The ROE does not have sufficient internal controls over the financial reporting process. While the ROE maintains controls over the processing of most accounting transactions, there are not sufficient controls over the preparation of the cash basis financial statements for management or employees in the normal course of performing their assigned functions to prevent or detect financial statement misstatements and disclosure errors and omissions in a timely manner. During review of the ROE’s accounting records, auditors noted the ROE should be a single audit for the year ended June 30, 2023. Auditors then reviewed the initial draft financial statements provided by the ROE and noted the ROE had not included the Schedule of Expenditures of Federal Awards in the financial statements.

Corrective Action Plan

ROE 40 will implement sufficient controls over the preparation of the cash basis financial statements for management or employees in the normal course of performing their assigned functions to prevent or detect financial statement misstatements and disclosure errors and omissions in a timely manner. ROE 40 will include the Schedule of Expenditures of Federal Awards in the financial statements, if necessary.

Categories

Reporting

Other Findings in this Audit

  • 1177757 2023-003
    Material Weakness Repeat
  • 1177758 2023-004
    Material Weakness Repeat
  • 1177759 2023-005
    Material Weakness Repeat
  • 1177760 2023-003
    Material Weakness Repeat
  • 1177761 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 EDUCATION STABILIZATION FUND $14,900