Finding Text
Type of Finding: ? Significant Deficiency in Internal Control over Financial Reporting Condition: During the course of our audit, misstatements in the accounting records was detected as a result of audit procedures performed. Adjustments were posted by management to correct the misstatements. The corrected misstatements impacted expense, accrued vacation, revenue, accounts receivable and increased the change in net assets by $5,371. Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to provide management with reasonable assurance year-end reporting of financial information and related disclosures is accurate and in according with accounting principles generally accepted in the United States of America. Effect: Inaccurate financial reporting could adversely affect the decision making process for the management of the Inner Voice. Cause: Accounting principles generally accepted in the United States of America were not followed over the accounting of a grant that was unconditional and vacation earned according to the Inner Voice?s vacation policy. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management review policies and procedures over year-end transactions to ensure that all necessary adjustments are being posted on a timely basis, in the appropriate period, and in accordance with generally accepted accounting principles. Views of responsible officials and planned corrective actions: We are in the process of discussing with the Board for hiring of a finance person to prepare the reports so that CFO can review and approve his/her work.