Finding Text
SIGNIFICANT WEAKNESS 2022 ? 001 Financial Statements Criteria: The Organization?s financial statements showed a combined negative net assets in several funds during the year ended June 30, 2022 (Repeat finding). Condition: The Organization?s financial statements showed a combined negative net assets of ($891,761) in several funds during the year ended June 30, 2022. While this figure represents a reduction in the combined negative net assets from the prior fiscal year, this represents a continuing financial weakness in the Organization, though the Organization does appear to have stabilized and begun to reverse the negative net assets. The Organization also has experienced diminishment of fundings in the past decade, primarily due to reductions in federal funding to both the Organization and certain of its public agency funders. Effect: The resulting cash flow situation has led in prior years to staff layoffs, furloughs, and other cost-cutting measures. Cause: There are a limited number of personnel for certain functions and deficiency in internal control systems. Recommendation: There is a need for more Board oversight in providing short and long-term vision for the agency in seeking additional sources of governmental and non-governmental support.