Finding Text
Finding 2023-002 Year-End Closing Process
Information on the Federal Programs: All
Criteria: In accordance with 2 CFR 200.303, the Organization must establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity
is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should be in compliance with guidance in
‘‘Standards for Internal Control in the Federal Government’’ issued by the Comptroller General of the
United States and the ‘‘Internal Control Integrated Framework’’, issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Condition: We had several current year audit adjustments including an adjustment to tie out opening
net assets, adjustments to update the year-end balance of investments, and additional audit
adjustments were provided late during the audit process that impacted the numbers on the Schedule
of Federal Expenditures. We will continue our prior year recommendation.
Cause: The monthly and year-end closing process did not detect these corrections.
Effect: If all accounts are not properly reconciled as of year-end, the Organization's consolidated
financial statements may contain undetected misstatements.
Questioned Costs: None noted.
Context: Our audit included testwork over significant asset and liability balances.
Identification as a Repeat Finding: See Finding 2022-001
Recommendation: We recommend that the Organization pay additional attention to the closing
process to ensure that all accounts are reconciled in advance of the audit. Review and approval
procedures should be in place to ensure that errors are detected.