Finding Text
Finding 2024-001
Issue: Audit Adjustments
Federal : N/A
Federal Program: N/A
Assistance Listing Number: N/A
Pass-Through Agency: N/A
Criteria:
Management is charged with maintaining fiscal integrity and stewardship. This includes providing
accurate and timely financial information.
Condition:
During our current year audit, audit adjustments were required to correct misstatements. Professional standards define an audit adjustment as a proposed correction of the financial statements that, in our adjustment, may not have been detected except through our auditing procedures. Audit adjustments that, either individually or in the aggregate, may have a significant effect on the Corporation's financial reporting process were reviewed, approved, and posted by management. The audit adjustments also had a significant effect on the amounts reported on the SEFA.
Cause:
The Corporation experienced turnover in key positions in the current year. The timing of that turnover resulted in delays in some reconciliation processes, resulting in material audit adjustments.
Effect or Potential Effect
There is an enhanced risk of inaccurate accounting records or untimely information.
Questioned Costs:
None.
Context:
The timing of receiving information from contractors attributed to the audit finding, which resulted in audit adjustments. This also affected the total expenditures on the SEFA.
Repeat Finding:
This is not a repeat finding.
Recommendation:
We recommend management review transactions occurring at or near year end for proper cutoff.
Views of Responsible Officials of the Auditee:
Management will review transactions after year-end to ensure proper accounting and financial reporting. Additionally, the Agency has hired a new Financial Comptroller to oversee this process, with an anticipated start date at the end of March 2025.