Finding 1191479 (2025-001)

Finding: 2025-001 — Material Weakness: Controls Over Grant Accounting, Year End Closing, and Financial Reporting Condition: Controls over grant accounting and year-end closing were not designed or operating effectively, resulting in delayed reconciliations, and a prior-period error correction. Repeat finding: No. Criteria: Under Government Auditing Standards, entities must maintain effective internal control over financial reporting to prevent or detect material misstatements in a timely manner. Cause: Lack of a formal close process and delayed reconciliations of grant activity. Effect: Material misclassification required a prior-period error correction and caused audit delays. Perspective / Context: The deficiencies occurred across the entire year end process and were observed in multiple reconciliations, indicating a systemic weakness rather than isolated exceptions. Cross Reference to Federal Award Findings: This financial statement material weakness directly affects internal control over compliance for major federal programs and forms the basis of Finding 2025 003. Recommendation: Implement a documented closing calendar and perform timely reconciliations. Management Response: Management concurs and will implement improvements for FY 2026.