Finding Text
#2025-001 FINDING: Preparation of Consolidated Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) Federal Programs Affected: Rural Housing Service Loan Balance AL # 10.766; Community Development Financial Institutions AL # 21.020 Compliance Requirements: Reporting Questioned Costs: None Condition and Cause: As a matter of practicality and efficiency, we have assisted in drafting the consolidated 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 consolidated financial statements and SEFA in accordance with the applicable financial reporting framework. The auditor’s responsibility for the consolidated financial statements and SEFA is to express an opinion on them based on the audit evidence obtained. Repeat Finding from Prior Year: Yes, prior year finding 2024-001. Recommendation: Management and if applicable, governance, should review the consolidated 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/Correction Action Plan: Management is in agreement with the finding. See Correction Action Plan.