Finding 4455 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-12-15

AI Summary

  • Answer: Management needs to improve its ability to identify when adjusting journal entries are necessary for accurate financial reporting.
  • Trend: There is a recurring issue with timely recognition of adjustments, which could lead to non-compliance with U.S. GAAP.
  • List: Recommend training for management on U.S. GAAP requirements and regular reviews of financial statements to ensure adjustments are made when needed.

Finding Text

Consideration of Management’s Ability to Recognize the Need for Adjusting Journal Entries for its Financial Statements to be Reported in accordance with U.S. GAAP

Corrective Action Plan

VARR agrees with the finding and will continue to enhance our knowledge and understanding of financial reporting, knowing that due to the small size and limited financial resources obtaining a qualified accounting professional either as an employee or an outside consultant to the level of skills, knowledge, and experience necessary may be difficult. VARR commenced obtaining this knowledge as the audit progressed and obtained enhanced bookkeeping knowledge necessary to facilitate the posting of these adjustments by November 27, 2023. We expect that our skills, knowledge and experience will improve throughout the remainder of 2023 and beyond. We expect that we will enhance the development of our systems to capture and provide for the seamless integration of this finding by January 31, 2024. This action is in accordance with the requirements of Uniform Guidance 2 CFR §200.511(c).

Categories

No categories assigned yet.

Other Findings in this Audit

  • 4453 2022-001
    Material Weakness Repeat
  • 4454 2022-002
    Material Weakness Repeat
  • 4456 2022-001
    Material Weakness Repeat
  • 4457 2022-002
    Material Weakness Repeat
  • 4458 2022-003
    Material Weakness Repeat
  • 4459 2022-001
    Material Weakness Repeat
  • 4460 2022-002
    Material Weakness Repeat
  • 4461 2022-003
    Material Weakness Repeat
  • 4462 2022-001
    Material Weakness Repeat
  • 4463 2022-002
    Material Weakness Repeat
  • 4464 2022-003
    Material Weakness Repeat
  • 4465 2022-001
    Material Weakness Repeat
  • 4466 2022-002
    Material Weakness Repeat
  • 4467 2022-003
    Material Weakness Repeat
  • 4468 2022-001
    Material Weakness
  • 4469 2022-002
    Material Weakness
  • 4470 2022-003
    Material Weakness
  • 580895 2022-001
    Material Weakness Repeat
  • 580896 2022-002
    Material Weakness Repeat
  • 580897 2022-003
    Material Weakness Repeat
  • 580898 2022-001
    Material Weakness Repeat
  • 580899 2022-002
    Material Weakness Repeat
  • 580900 2022-003
    Material Weakness Repeat
  • 580901 2022-001
    Material Weakness Repeat
  • 580902 2022-002
    Material Weakness Repeat
  • 580903 2022-003
    Material Weakness Repeat
  • 580904 2022-001
    Material Weakness Repeat
  • 580905 2022-002
    Material Weakness Repeat
  • 580906 2022-003
    Material Weakness Repeat
  • 580907 2022-001
    Material Weakness Repeat
  • 580908 2022-002
    Material Weakness Repeat
  • 580909 2022-003
    Material Weakness Repeat
  • 580910 2022-001
    Material Weakness
  • 580911 2022-002
    Material Weakness
  • 580912 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.12M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $773,461
93.788 Opioid Str $34,410