Finding Text
Finding 2025-002: Adjustments to Financial Statements and Schedule of Expenditures of Federal Awards Federal Program Affected: Protection and Advocacy for Individuals with Mental Illness, ALN 93.318 and Developmental Disabilities Basic Support and Advocacy Grants, ALN 93.630 Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: During our engagement, we posted several audit adjustments. Adjustments included entries to cash, prepaids, receivables, lease assets, lease liabilities, accrued liabilities, refundable advance and federal grant revenue, net assets, and the schedule of expenditures of federal awards (SEFA). The Organization does not have internal control processes to reconcile year-end balances. Criteria and Effect: All balance sheet accounts and SEFA balances should be reconciled to supporting schedules. These adjustments were not identified with the Organization’s existing internal controls and would have resulted in a material misstatement of the Organization’s financial statements and SEFA. Repeat Finding from Prior Year: 2024-002 Recommendation: All significant balance sheet accounts, net assets and federal expenditures reported on the SEFA should be reconciled to supporting schedules and adjusted regularly. At a minimum, such reconciliations should be completed at year end. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.