Finding Text
Finding 2022-003 Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent or detect misstatements of the financial statements on a timely basis. A control deficiency that is typically considered significant is the identification by the auditor of a misstatement in the financial statements that was not initially identified by the Cooperative?s internal control. Condition: The Cooperative?s internal controls did not allow the prevention of misstatements when recording the necessary entries for proper financial statement presentation. Questioned Costs: None. Context: The Cooperative did not follow their internal controls in respect to reconciling procedures. Effect: The condition of this finding increases the likelihood of a lack of internal controls. Cause: The Cooperative did not properly record the necessary entries to reflect the physical transactions in the financial statements. Repeat Finding: N/A. Recommendation: We recommend that the Cooperative continue to review internal controls currently in place. Current Status: Resolved, the Cooperative took the necessary action to record the required transactions in the financial statements. Action Taken: The Cooperative took the proper action to correct the misposted transactions during on-site visit. Views of Responsible Officials and Planned Corrective Actions: The Cooperative agrees with this finding and will adhere to the corrective action plan on pages 31-32 in this audit report.