FAC Explorer

Finding 561302 (2024-002)

Significant Deficiency
Requirement
IL
Questioned Costs
-
Year
2024
Accepted
2025-05-22
Audit: 356945
Organization: Region 1 Planning Council (IL)
Auditor: Lauterbach & Amen LLP

AI Summary

  • Core Issue: Significant audit adjustments were needed to ensure accurate financial statements.
  • Impacted Requirements: Internal controls should ensure all account balances are accurate before audits.
  • Recommended Follow-Up: Implement a review process for general ledger balances to improve budgeting and resource management.

Finding Text

Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all Council accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the Council’s financial statements. Effect: The Council’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the Council’s financial activities and resources.

Corrective Action Plan

Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present materially accurate financial statements. Plan: The Director of Finance, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. Anticipated Date of Completion: June 30, 2025 Name of Contact Person: Kayla Gipson, Director of Finance Management Response: Agree with the finding. In FY24, we implemented a new accounting software. The Director of Finance will ensure additional appropriate action is taken to reduce the number of entries proposed by the auditors and ensure fully adjusted financial statements are prepared prior to fieldwork.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 561301 2024-001
    Material Weakness
  • 1137743 2024-001
    Material Weakness
  • 1137744 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
16.609 Project Safe Neighborhoods $204,405
66.460 Nonpoint Source Implementation Grants $84,540
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $75,950
21.027 Coronavirus State and Local Fiscal Recovery Funds $73,661
20.205 Highway Planning and Construction $54,440
20.939 Safe Streets and Roads for All $45,050