Finding Text
Condition: Several material audit adjustments were required to present the financial statements and schedule of expenditures of federal awards in accordance with accounting principles generally accepted in the United States of America.
Criteria: An effective system of intenal controls allows management or employees, in the normal course of performing their assigned functions, to prevent, detect and correct misstatements on a timely basis.
Effect: Significant adjustments that were material in the aggregate in relation to the financial statements were not detected and recorded on a timely basis.
Cause: Timely reconciliation of certain general ledger accounts was not performed by management. As a result, material adjustments were required to be made to the Organization's financial statement accounts.
Recommendation: We recommend the Organization review its policies and procedures to ensure that all account balances and transactions are periodically reviewed for proper treatment in accordance with accounting principles generally accepted in the United States of America.
View of Responsible Officials and Planned Corrective Actions: See management's attached corrective action plan.