Finding Text
Financial Statement Preparation
Type of Finding:
Material Weakness in Internal Control over Financial Reporting
Condition: The Corporation prepares certain accounts on the cash basis of accounting. As part of the
audit, these accounts were converted to the accrual basis as required by accounting principles
generally accepted in the United States of America. Audit adjustments were also made to record
depreciation and amortization.
The Corporation also engages CliftonLarsonAllen LLP (CLA) to assist in preparing its financial
statements and accompanying disclosures.
Criteria or Specific Requirement: A strong system of internal controls requires the Corporation to
prepare its own accounting records and financial statements in accordance with accounting principles
generally accepted in the United States of America.
Cause: The Corporation engages CLA to assist in this process. However, the Corporation has
reviewed and approved the annual financial statements and the related disclosures.
Effect: This increases the risk of material omissions or other errors in financial statements and
accompanying disclosures.
Repeat Finding: Yes. Prior year finding 2022-002.
Recommendation: Management should continue to evaluate their internal staff capacity to determine if
an internal control policy over the annual financial reporting is beneficial.
Views of Responsible Officials and Planned Corrective Actions: This condition is inherent in
operations which, for sound economic reasons, must function with a small number of office personnel.
Correction of this condition would require the employment of additional office personnel. We will
continue to monitor financial reports and accounting information as correction of this condition is
not practical.