Finding 573420 (2024-001)

Finding Number: 2024-001 Repeat Finding: No Type of Finding: Material Weakness Description: Internal Control over Financial Reporting Condition: During the audit of the April 30, 2024 financial statements, Wipfli proposed a restatement to the beginning net assets with and without donor restrictions and several adjusting journal entries to properly record accrued payroll, refundable advances, and grant revenue and expenses which we deem to be material in relation to the financial statements. We noted that not all accounts were consistently reconciled on a timely basis and adjusting journal entries are not reviewed by someone other than the preparer. Since the internal controls of the Organization did not detect and record the adjustments described above prior to the audit, a material weakness exists in the Organization's internal control over financial reporting and the preparation of the financial statements in accordance with accounting principles generally accepted in the United States (GAAP). Criteria: Internal controls are effective if they are properly designed and implemented to prevent or detect account misstatements prior to the audit. Cause: The internal controls of the Organization were not effective in preventing or detecting and correcting the misstatements described above prior to the audit. Effect: As a result of the financial reporting matter identified in the condition paragraph, a material weakness exists in the Organization's internal control over financial reporting. Recommendation: We recommend the Organization implement procedures, such as timely reconciling of accounts and review of all reconciliations and adjusting journal entries by someone other than the preparer, to provide sufficient internal control over financial reporting so all necessary transactions are recorded in accordance with GAAP. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.