Finding 1218091 (2024-001)

2024-001 Financial Statement Preparation Condition: The Organization's financial statements required numerous material audit adjustments in order to be presented in conformity with U.S. generally accepted accounting principles. Criteria: Management is responsible for preparing financial statements in accordance with U.S. generally accepted accounting principles. Cause: The Organization did not identify and record all necessary year-end adjustments prior to the commencement of the audit. Effect: Material audit adjustments were required to properly state receivables, revenues, accounts payable, lease balances, and other financial statement accounts. Auditor's Recommendation: Management should strengthen its financial reporting procedures and year-end closing process to ensure financial statements are prepared in accordance with U.S. generally accepted accounting principles prior to the audit. Grantee Response: Management agrees with the finding and is working to improve its financial reporting and review procedures to ensure that year-end financial information is complete and accurate before the audit begins.