Finding #2023-001 – Material Audit Adjustments
Condition: Material audit adjustments were required to adjust noncash contributions and related expenses and various accounts related to the construction of the new building at year-end.
Effect: Financial statements generated by the accounting system may not provide an accurate reflection of the Organization’s financial position and activities.
Cause: Significant noncash contributions not recorded throughout the year and new building project spanning over multiple years.
Criteria: Month-end and year-end closing processes should be in place to ensure that records are correct, reliable, and properly reconciled.
Recommendation: We recommend that the Organization improve their month-end and year-end closing processes to include reviewing annual audit entries and posting any applicable entries prior to the audit. Management should then review the financial information on a timely basis.
Response: The Organization will review the month-end and year-end closing processes. The Organization will review the annual audit entries as part of the closing processes and post any applicable entries prior to future audits.
Contact Person: Darlene Masters
Anticipated Completion: December 31, 2024