Finding Text
2022-001 Material Audit Adjustment Condition: During our audit, adjustments were needed to correct the financial statements, including the following material entries: ? To adjust state and federal aid revenues and receivables Criteria: The financial statements are the responsibility of the Agency?s management; therefore, the Agency must be able to prevent or detect a material misstatement in the financial statements including footnote disclosures. Cause: Agency staff has not prepared a year-end trial balance reflecting all necessary accounting entries. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the Agency?s system of internal control. The audit firm cannot serve as a compensating control over this deficiency. Recommendation: We recommend that management review each journal entry, obtain an understanding of why the entry was necessary and modify procedures to ensure that future corrections are not needed. Management Response: Management will continue to review and gain an understanding of the audit adjustments in order to reduce the number of entries necessary for future audits. The Agency Fiscal Manager plans to remedy this finding in future years