Finding 5697 (2022-002)

Finding: 2022-002: Internal Control over Compliance Criteria or Specific Requirements: Management is responsible for submitting financial statements to Workforce Midsouth within 30 days after the receipt of the audit or nine months after year end, whichever is shorter. Condition: The Organization’s prior year financial statements were not released to them until April 12, 2022. For the current year, the report is being released later than nine months after year end as well. Cause: The Organization experienced some difficulty with their accounting system causing the year end close not to happen timely. Effect: The untimely closing did not allow the accounting staff the proper time to prepare for the financial statement audit and Single Audit required under the Uniform Guidance. Auditor’s Recommendation: Management should closely monitor the year end closing processes to ensure that they are being performed timely and accurately. Organization’s Response: Management has and shall continue to monitor and revise year end closing procedures to ensure sufficient controls are in place to assure accounts are closed timely. Status: As of the date of this report, the finding is unresolved, as both current and prior year are now late.