Finding 1223599 (2025-001)

Auditor Preparation of the Financial Statements Material Weakness Criteria: Management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation in the financial statements of financial position, results of operations, and cash flows, including the notes to financial statements, in conformity with U.S. generally accepted accounting principles. Condition: As part of the audit, management requested the auditor to prepare a draft of the financial statements, including the related notes to financial statements and supplementary information. Generally Accepted Auditing Standards require auditors to report it as a finding when they prepare the complete annual reporting package for their clients. Management reviewed, approved, and accepted responsibility for those financial statements prior to their issuance. Cause: This deficiency is partially due to limited resources in the financial reporting process. Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization of this size. Effect: There is a reasonable possibility that the Organization would not be able to draft a complete and accurate financial statements. Recommendation: We recommend that Management continue to evaluate the cost benefit of preparing a draft of the audited financial statements, supplemental schedules, and disclosures. Managements Response: Management will continue to allow the audit firm to create the draft financial statements and related footnote disclosures, and will review and approve these prior to the issuance of the annual financial statements.