Finding Text
#2025-002 FINDING: Financial Statement and Schedule of Expenditure of Federal Awards (SEFA) Preparation and Audit Adjustments Federal Program Affected: All major federal programs Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: As a matter of practicality and efficiency, we have assisted in drafting the financial statements and schedule of expenditures of federal awards, in both form and content, based on information provided by management during the audit. In addition, material audit adjustments were approved and recorded by management. The School did not have an internal control process to prepare the financial statements and SEFA. In addition, material audit adjustments were approved and recorded by management. These adjustments resulted in an approximate $622,000 increase in fund balance. Criteria and Effect: Management and those charged with governance are ultimately responsible for adjusting account balances and preparing and presenting the financial statements and SEFA in accordance with the applicable financial reporting framework. The auditor’s responsibility for the financial statements is to express an opinion on them based on the audit evidence obtained. Repeat Finding from Prior Year: Yes, Finding #2024-002 Recommendation: Management and if applicable, governance, should review the financial statements, SEFA, and audit adjustments for accuracy of account balances and context of note disclosures. Management and governance should inquire of the auditors about any balances or disclosures which management does not understand or cannot reconcile to internal records prior to signing the management representation letter. Response/Corrective Action Plan: See Corrective Action Plan.