FAC Explorer

Finding 1225080 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-07-30
Audit: 408239
Organization: Laramie Child Development Corporation (WY)
Auditor: KETEL THORSTENSON LLP

AI Summary

  • Core Issue: Management is responsible for preparing accurate financial statements and SEFA, but we assisted in drafting them, which may blur accountability.
  • Impacted Requirements: Compliance with financial reporting standards is crucial, and any inaccuracies could lead to issues in governance and oversight.
  • Recommended Follow-Up: Management should thoroughly review financial statements and SEFA for accuracy and consult with auditors on any unclear items before finalizing documents.

Finding Text

Finding 2025-001: Financial Statement Preparation and Schedule of Expenditures of Federal Awards (SEFA) Federal Program Affected: U.S. Department of Health and Human Services Head Start and Early Head Start Program (ALN #93.600) Compliance Requirement: Reporting Questioned Costs: None known or likely over $25,000 Condition and Cause: As a matter of practicality and efficiency, we have assisted in drafting the financial statements and SEFA, in both form and content, based on information provided by management during the audit. Criteria and Effect: Management and those charged with governance are ultimately responsible for preparing and presenting the financial statements and SEFA in accordance with the applicable financial reporting framework. The auditor’s responsibility for the financial statements and SEFA is to express an opinion on them based on the audit evidence obtained. Repeat Finding from Prior Year: N/A Recommendation: Management and governance should review the financial statements and SEFA 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: The Organization agrees with the above finding. See Corrective Action Plan.

Corrective Action Plan

Finding #2025-001: Financial Statement Preparation and Schedule of Expenditures of Federal Awards (SEFA) Responsible Individual: Debbie Sullivan, Fiscal Coordinator and Jennifer Brook, Chief Financial Officer Corrective Action Plan: It is more cost effective for the Organization to hire Ketel Thorstenson, LLP, a public accounting firm, to prepare the full disclosure financial statements as a part of the annual audit process. Management of the Organization has reviewed the financial statements and schedule of expenditures of federal awards prepared by Ketel Thorstenson, LLP. The financial statements and SEFA have been compared and reconciled to the internal records maintained by the Organization. Management and the board of directors has been given adequate opportunity to ask questions regarding the financial statements and note disclosures and have received sufficient responses from the auditors prior to final publication of the audited financial statements and SEFA. Management is satisfied that appropriate actions have been taken to allow them to take responsibility for the financial statements. Anticipated Completion Date: Ongoing

Categories

Reporting

Other Findings in this Audit

  • 1225081 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $1.11M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $50,210