Finding Text
Type of Finding:
Material Weakness in Internal Control over Financial Reporting
Condition: Centennial Square does not have a policy in place to provide reasonable assurance that
financial statements are prepared in accordance with accounting principles generally accepted in the
United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of
the annual financial statements could occur and not be prevented, or detected and corrected, by
Centennial Square’s internal controls.
Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance
that financial statements are prepared in accordance with U.S. GAAP.
Effect: The lack of controls in place over the financial reporting function increases the risk of
misstatements, fraud, or errors occurring and not being detected and corrected.
Cause: Centennial Square has not adopted a policy to provide reasonable assurance that financial
statements are prepared in accordance with U.S. GAAP; however, management has reviewed and
approved the annual financial statements and related notes, as prepared by CliftonLarsonAllen, and
has accepted responsibility for those financial statements.
Repeat finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding
number was 2023-001.
Recommendation: Centennial Square should evaluate their financial reporting processes and controls,
including the expertise of its internal staff, to determine whether additional controls over the preparation
of annual financial statements can be implemented to provide reasonable assurance that financial
statements are prepared in accordance with U.S. GAAP.
Views of responsible officials and planned corrective actions: Management will continue to rely on
CliftonLarsonAllen to draft the financial statements and the related notes to the financial statements,
and will review, approve, and accept responsibility for the annual financial statements prior to
their issuance.