Finding 525576 (2024-001)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-03-04
Audit: 344683
Organization: Gage County (NE)
Auditor: Gbe CPA

AI Summary

  • Core Issue: The County lacks personnel with the necessary expertise in financial statement preparation according to GAAP.
  • Impacted Requirements: This deficiency increases the risk of material misstatements in financial statements.
  • Recommended Follow-Up: Consider training current staff or hiring experts to improve financial reporting capabilities.

Finding Text

Criteria: Good internal control requires entities have personnel in place to produce financial statements, which includes the notes to the financial statements, in accordance with GAAP and other applicable standards. Condition: Though management demonstrates the capability of running a governmental organization, we noted a lack of expertise and knowledge was evident in the area of financial statement preparation in accordance with cash basis and other applicable standards. Additionally, numerous material audit adjustments were brought to management’s attention during the audit. Effect: Without proper personnel, there is an increased risk the financial statements may be materially misstated. Recommendation: We recommend the County weigh the cost benefit of providing training to current personnel in the areas of GAAP and financial statement preparation or hiring additional personnel with this expertise. Response: The County will consider the costs benefit of training provisions or hiring additional personnel. Questioned Costs: No questioned costs were identified.

Corrective Action Plan

The County has discussed the finding but must consider the cost of professional resources to complete a set of drafted county financial statements.

Categories

Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 525577 2024-002
    Material Weakness
  • 525578 2024-003
    Material Weakness
  • 1102018 2024-001
    Material Weakness
  • 1102019 2024-002
    Material Weakness
  • 1102020 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.85M