Finding Text
Management is responsible for the design, implementation, and maintenance of internal
controls relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
Management is responsible for timely submission of audited financial statements to Federal
Audit Clearinghouse ("FAC").
Condition
The accounting records required numerous material adjustments to be proposed and
recorded in order for the financial statements to be fairly presented in accordance with
generally accepted accounting principles in the United States of America.
Single Audit reports are required to be submitted to the FAC pursuant to the audit
requirement of Title 2 U.S. Code of Federal Regulations Part 200. Submission of June 30,
2023 financial statements was not completed within the specified time frame.
Cause
Management did not have sufficient controls over financial reporting.
Effect or Potential Effect
Condition 1 may lead to inaccurate financial reporting and potential misstatement of the
financial statements such that they are not in accordance with accounting principles
generally accepted in the United States of America. Condition 2 results in auditee being
designated as not a low-risk auditee, which may have an effect on future federal grants and
program eligibility.
Questioned Costs
N/A
Identification as a Repeat Finding
This finding is not a repeat finding.
Recommendation
Management should undertake a review of internal controls over financial reporting and
ensure that financial data is properly recorded in the books and records of the Project to
prevent misstatements from occurring in the future.
Management should implement procedures to ensure that required filing is completed
timely.
Auditor Noncompliance Code: S. Internal control deficiencies
Finding Resolution Status: Resolved.
Views of Responsible Officials
Management agrees with the finding and recommendation and had implemented reviews of
the financial statements by senior management prior to closing books to ensure accuracy of
information. Management agrees with the finding and recommendation and will ensure required filing is
completed timely.