Finding 571729 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-07-22
Audit: 362739
Organization: Helena Indian Alliance (MT)
Auditor: Jccs PC

AI Summary

  • Core Issue: $416,492 in expenses were not recorded in the correct fiscal year, leading to inaccurate financial statements.
  • Impacted Requirements: This finding violates GAAP principles regarding the timing of expense recognition.
  • Recommended Follow-Up: Ensure all invoices are recorded in the correct period to avoid future misstatements.

Finding Text

Finding 2023-001: Year-End Close and Review - Condition and Criteria: Under GAAP, expenses and related liabilities should be recorded in the period in which they are incurred, regardless of when the invoice is received or paid. During our audit procedures over year-end accounts payable, we identified $416,492 in invoices related to the fiscal year ended September 30, 2023 that were not recorded until the subsequent fiscal year. This resulted in a material understatement of liabilities and fixed assets as of year-end.

Corrective Action Plan

Finding 2023-001: Year-End Close and Review - Recommendation: We recommend the Organization perform a thorough year-end close and review by reviewing current balances compared to the prior year, reviewing bank reconciliations for any large outstanding items, and reviewing details of account balances, as necessary, prior to providing the trial balance for audit. Management’s Response: We agree with the recommendation and recognize the importance of a thorough year-end close and review process. Management will implement procedures to compare current year account balances to the prior year, ensure all bank reconciliations are completed and reviewed for significant outstanding items, and analyze account details as needed. These steps will be incorporated into our year-end closing checklist to help ensure the accuracy and completeness of the trial balance prior to submission for audit.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 571730 2023-002
    Significant Deficiency
  • 571731 2023-003
    Significant Deficiency
  • 571732 2023-004
    Significant Deficiency
  • 571733 2023-005
    Material Weakness
  • 1148171 2023-001
    Material Weakness Repeat
  • 1148172 2023-002
    Significant Deficiency
  • 1148173 2023-003
    Significant Deficiency
  • 1148174 2023-004
    Significant Deficiency
  • 1148175 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.193 Helena Urban Clinic $4.45M
93.237 Special Diabetes Program for Indians_diabetes Prevention and Treatement Projects $282,807
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $273,140
93.788 Opioid Str $59,026
93.638 Rocky Mountain Tribal Leaders Council Tribal Opioid Response $10,140