Finding Text
Section II ?Financial Statement Findings Finding 2022-001 Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: During our audit, it came to our attention that several key accounts (cash, receivables, payables, etc.) had not been reviewed as of year-end. The School had several post year-end adjustments to present its financial statements in accordance with generally accepted accounting principles. Such adjustments related to errors (both material and immaterial) that were undiscovered throughout the fiscal year. Criteria: In accordance with Uniform Guidance, the School must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, ?200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: The School did not have adequate internal controls over financial reporting in place to ensure the review and analysis of its financial statements on a timely basis. Effect: The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors, and irregularities to go undetected. Also, accurate financial information may not have been available to make management decisions. Questioned Costs: None. Recommendation: We strongly recommend the School develop a formal written procedure to develop monthly and year-end financial reporting procedures and checklists to assist in the preparation of financial statements. These policies should ensure reconciliations and other account analyses are completed and reviewed by appropriate supervisory personnel.