Finding 389581 (2023-001)

Finding 2023-1 Financial Statement Preparation Criteria: Good internal control requires entities have personnel in place to produce financial statements, which includes the notes to the financial statements, in accordance with GAAP and other applicable standards. Condition: Though management demonstrates the capability of running a governmental organization, we noted a lack of expertise and knowledge was evident in the area of financial statement preparation in accordance with cash basis and other applicable standards. Additionally, numerous material audit adjustments were brought to management’s attention during the audit. Effect: Without proper personnel, there is an increased risk the financial statements may be materially misstated. Recommendation: We recommend the County weigh the cost benefit of providing training to current personnel in the areas of GAAP and financial statement preparation or hiring additional personnel with this expertise. Response: The County will consider the costs benefit of training provisions or hiring additional personnel.