Finding Text
Finding 2025-001: Financial Statement Preparation and Schedule of Expenditures of Federal Awards (SEFA) Federal Program Affected: ACL Centers for Independent Living Agency Grant – Part C, ALN 93.432 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.