Finding Text
Financial Statement Finding 2022-001 Repeat Audit Finding: Audit Finding #2021-001 Criteria ? Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with generally accepted accounting principles. Condition ? HAVEN does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and ensure related footnote disclosures are complete and presented in accordance with generally accepted accounting principles. Cause ? HAVEN relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects ? The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of HAVEN as its internal staff. Auditor?s Recommendation ? Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Officials ? HAVEN agrees with the finding and will investigate if this can be addressed internally by the new Finance Director.