Finding Text
Condition During the audit, we identified adjustments for the following: Audit adjustments for the prior year were not posted to the accounting records, resulting in a $116,141 overstatement of beginning net assets, as well as differences in long-term debt balances and overstatement of current year salaries and revenue, The board designated endowment fund at the Oregon Community Foundation was not adjusted to record the activity for the last nine months of the year, and an entry to record donations to the fund was posted backwards. FQHC WRAP receivable and revenue were not adjusted to actual for the last six months of the year. Although the State of Oregon is six months in arrears in making the payments, the Clinic has the information to record the correct amounts much sooner. The difference was $637,O34. We consider this finding to be a material weakness in internal control. Effect The general ledger required significant adjustments during the audit in order to fairly present the financial statements. Interim reports prepared for Board and management use during the year contained some inaccurate information. Cause: There were changes in personnel in some key positions related to financial accounting and reporting, which contributed to the condition. Not all general ledger asset, liability and equity accounts were routinely reconciled on a periodic basis or at the fiscal year-end. Insufficient controls were in place for timely reconciliation and adjustment of certain account balances. Recommendation: We recommend that management review its closing policies and procedures in place and procedures for periodic reconciliation of significant balance sheet accounts to ensure that they are adjusted in a timely manner to provide for accurate financial reporting, Views of Responsible Officials and Planned Corrective Actions: Management acknowledges some periodic reconciliations of significant balance sheet accounts were not performed in a timely manner due to ongoing staffing shortages and gaps in training within the fiscal department. White Bird's former CFO departed the agency in March of 2022. For this reason, the agency leaned more heavily on its auditors to ensure proper reporting balances of its financial accounts as of year-end. Management agrees with and has made all adjusting entries to its ledgers as of June 30, 2022. Management has reviewed its closing policies and procedures and made improvements to its closing processes, including training staff to perform appropriate reconciliations of pertinent general ledger balances. FTNDTNGS AND