Finding Text
Finding No: 2025.001 Type: Internal control deficiency over financial reporting Condition: We identified an internal control deficiency in the accrual process of the Commission, related to a number of material unrecorded adjustments Criteria: Generally Accepted Accounting Principles (U.S. GAAP) Amount: Current year revenue was overstated by $202,604 cumulatively, current year receivables were understated by $304,063. Cause: There were two instances of grant revenue that should have been accrued in the prior year and overstated revenue by $506,667. There was one instance of interest revenue that should have been accrued in the current year and understated revenue by $304,063. Effect or Potential Effect: 1. Unaudited financials had revenue that was overstated by $202,604, and receivables that were understated by $304,063. 2. Other material accruals could mean over or understated revenue, expenses, assets, and liabilities in the current fiscal year. Repeat Audit Finding: No