Finding Text
2022-001 Preparation of Financial Statements Criteria: The Association has a competent finance staff able to perform day-to-day functions of the financial department but does not have staff with technical ability to prevent, detect, and correct a potential misstatement in the financial statements and notes drafted by the auditor. Condition: There exists a lack of technical expertise to draft or prepare the financial statements and related notes in accordance with generally accepted accounting principles. Effect: The financial statements have the potential of misstatement. Cause: The current staff does not have the necessary training and expertise that is required to prepare the financial statements. Recommendation: The Board should obtain the financial expertise necessary to oversee the preparation of the financial statements. Current Status: The Association has a small staff and relies on the auditor to prepare the financial statements with required disclosures. There were no findings relating to the financial statements required to be reported in accordance with generally accepted government auditing standards.