Finding Text
Finding 2022-001 Programs: All Significant Deficiency over Financial Reporting Repeat Finding: No Condition: During the audit, we noted additional time needed by management to draft the financial statements and complete year-end journal entries. There was also a significant audit entry identified after the draft financial statements were provided to us. Criteria: Entities must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Cause: The College experienced transition in a key management position at the end of fiscal year 2022. Effect: A significant adjusting entry was recorded to accurately state the financial statements, and there was a delay in completing the audit. Questioned Costs: None. Recommendation: We recommend that the College review its year-end closing process used for fiscal year 2022. This review would include reviewing the level of detail of the procedures and the roles of those responsible, considering expanding the steps in the checklist for clarity and ease of monitoring, as well revisiting the timeline and management of the timeline during the close process. Management?s Response and Corrective Action Plan Management agrees with the finding. See schedule of corrective action.