Finding Text
Criteria: Bond issuance costs and bond discount were not written off upon retirement of bond principal. Condition: During our procedures surrounding bonds payable, we noted bond issuance costs and bond discount related to bond principal that was retired in the previous fiscal year were still recorded on the statement of financial position and continued to be amortized during the year ended December 31, 2021. Cause: Upon retirement of the Series 2018A-4 and 2018A-5 bond principal during debt refinancing in fiscal year ended December 31, 2021, the associated bond issuance costs and discount related to these bonds were not written off. Effect: Net (deficit) without donor restrictions was understated by $1,052,177. Bonds payable, net were understated by $1,052,177. Recommendation: We recommend the Organization implement an internal control that requires periodic reconciliation procedures of all significant statement of financial position accounts to the general ledger in order to ensure accuracy of the financial statements.