Finding 565377 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-19
Audit: 359225
Auditor: Cla LLP

AI Summary

  • Core Issue: There is a risk of significant errors in the financial statements that management's controls may not catch.
  • Impacted Requirements: Management must ensure financial records are accurate and complete, as evidenced by 7 proposed adjustments affecting total assets, liabilities, and net assets.
  • Recommended Follow-Up: Management should improve monthly and year-end closing processes to better recognize accruals, revenue, and expenses.

Finding Text

Condition: A potential exists that a material misstatement of the financial statements could occur and not be prevented or detected by management’s internal controls. Criteria: Management is responsible for the accuracy and completeness of financial records and related information. Effect: The adjustments proposed impacted various financial statement line items. In total 7 adjusting journal entries were proposed with an aggregate impact to decrease total assets of approximately $217,000, decrease liabilities of approximately $64,000, and decrease in change in net assets of approximately $153,000. Cause: Management oversight. Recommendation: Management should evaluate monthly and year-end closing procedures to ensure appropriate recognition of accruals, revenue, and expenses. Management’s Response: Management has reviewed, agreed to, and posted the proposed adjusting journal entries to the Foundation’s general ledger.

Corrective Action Plan

Material Misstatements Detected By the Audit Recommendation: Management should evaluate monthly and year-end closing procedures to ensure appropriate recognition of accruals, revenue, and expenses. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A comprehensive review of monthly and year-end closing procedures will be completed by FMI Kansas to ensure appropriate recognition of accruals, revenue, and expenses. Name(s) of the contact person(s) responsible for corrective action: Tiffany Goetz Planned completion date for corrective action plan: Ongoing

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 565378 2024-002
    Significant Deficiency Repeat
  • 1141819 2024-001
    Material Weakness
  • 1141820 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $5.85M