Finding Text
2022 ? 001 Type of Finding: ? Material Weakness in Internal Control over Financial Reporting Condition: In-kind revenues and expenses for donations related to the food pantry program were not recorded during the years ended July 31, 2022 and 2021. Revenues and expenses were incorrectly understated. As a result, audit entries were required to properly record the in-kind donations and distributions for the year ended July 31, 2022 and revenues and expenses for the year ended July 31, 2021 were restated. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: Revenues and expenses were materially misstated for the years ended July 31, 2022 and 2021. Cause: The Organization was not recording in-kind revenues and expenses for food donated to the organization as part of the food pantry program as required by GAAP. Repeat finding: This is not a repeat finding. Recommendation: The Organization should record their in-kind donations and distributions of food donated for the food pantry program at the fair market value of the donations. Views of responsible officials and planned corrective actions: Management will ensure in-kind contributions, including food donated for the food pantry program, and the related distributions, will be recorded at fair market value.