Finding Text
Finding Number: 2024-001
Questioned Costs: N/A
Information on Universe and Population Size: N/A
Sample Size Information: N/A
Noncompliance Information: No instances of noncompliance identified.
Statement of Condition: Material audit adjustments related to receivables, revenues, prepaid assets, accounts payable, accrued liabilities, and expenses were required to present the financial statements in accordance with generally accepted accounting principles.
Criteria: Management is responsible for maintaining its accounting records in accordance with generally accepted accounting principles.
Cause: Inadequate controls over financial close and reporting procedures.
Effect or Potential Effect: As a result of the condition, the Corporation’s accounting records were initially misstated by amounts material to the financial statements.
Recommendation: We recommend that control systems are put in place to ensure there is proper training and review over monthly and annual financial close and reporting procedures to eliminate errors in the future.
Reporting Views of Responsible Officials and Planned Corrective Action: While policies and procedures were fundamentally sound, deficiencies existed in the oversight and review of material transactions over receivables, revenues, prepaid assets, accounts payable, accrued liabilities, and expenses during financial close and reporting procedures. Therefore, the following action will be implemented by December 31, 2024:
• Management will implement staff training on monthly and annual procedures over financial close and reporting by December 31, 2024.