Finding 1238362 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-09-29

AI Summary

  • Answer: The prior year's investment balance was understated due to an unrecorded account.
  • Trend: This issue indicates a pattern of incomplete financial records, raising concerns about material misstatements.
  • List: Follow up by ensuring all investments are accurately recorded and reviewing financial controls to prevent future discrepancies.

Finding Text

Effect: The prior year investment balance reported on the balance sheet was understated by the ending balance of the unrecorded account. The amount is considered material based on the auditors’ judgment. Financial statements are incomplete and do not reflect all of the Organization’s investments. Financial records that are incomplete increases a risk that material misstatements in financial statements will not be prevented or detected in a timely manner.

Corrective Action Plan

Recommendation: We recommend the Organization immediately open a general ledger account for the unrecorded investment account and implement and enforce a formal policy requiring all investment accounts to be approved by the Board of Directors and recorded in the general ledger immediately upon opening.

Categories

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Other Findings in this Audit

  • 1238363 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.19M
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $131,130