Finding Text
Finding 2022-001 Programs: All Material Weakness and Noncompliance over Financial Reporting Repeat Finding: Yes Condition: During our audit, it came to our attention that the 2022 opening net assets did not reconcile to the 2021 independent audited amounts. There were several changes to the prior year balances after the end of the audit. Additionally, there is no supervisory review of journal entries and general ledger activity on a monthly basis. Criteria: In accordance with Uniform Guidance, the Foundation must maintain an adequate system of internal control over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, ? 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: Accounting personnel made changes to the general ledger accounts after the independent audit was finalized, which changed the reporting of certain prior year balances and account activity. Effect: A detailed review of journal entries and other financial analysis for the financial statement accounts could allow for misstatements, errors, and irregularities to go undetected. Also, accurate financial information may not have been available to make management decisions. Questioned Costs: Unknown. Recommendation: We recommend the Foundation develop formal written procedures for the monthly and year-end financial reporting procedures and checklists to assist in the close and preparation of financial its statements. These policies should ensure reconciliations and other account analyses are completed and reviewed by appropriate supervisory personnel. Auditee Response and Corrective Action Plan: Refer to management?s corrective action plans. Auditor?s Conclusion: Finding remains as stated.