Finding Text
Material Audit Adjustments - Criteria: Internal controls should be in place to ensure the District performs timely and accurate financial closeout procedures in order for the District to produce its monthly and annual financial statements and prepare for the annual audit. Condition: The District’s year end balances that were submitted for audit contained material misstatements. Effect: Numerous material audit adjustments were required to present the Government-wide statements, the General Fund, Special Projects Fund, EIA Fund, Food Service Fund, and Debt Service Fund fairly and in accordance with accounting principles generally accepted in the United States of America. Cause: The final audit for Clarendon Four was not issued until August 8, 2024. This was the result of the previous districts’ June 30, 2021 audits being issued late, and significant clean-up involved. Once the June 30, 2022 audit for Clarendon Four was issued, there was significant work to be done at the District level to then finalize the June 30, 2023 trial balance of the Clarendon County School District for audit. Because of the adjusted balances being brought forward so late, there were accounts that were not properly adjusted. Recommendation: The District should carefully review year end balances and relevant close out procedures to ensure that all transactions are reported in the proper period and in accordance with GAAP.