Finding Text
2022-001 Material Audit Adjustments Federal Program: Organization Wide and Coronavirus State and Local Fiscal Recovery Funds Criteria: Generally accepted accounting principles (GAAP). Condition: Material audit adjustments were required to prevent the Organization?s financial statements from being materially misstated. Questioned Costs: Not applicable. Cause: Internal controls did not identify that adjustments should be recorded. Effect: This weakness could result in undetected errors and irregularities creating material misstatements in the Organization?s financial statements. Information: Systemic. Prior Year Finding: The Organization was not required to be audited in accordance with the Government Auditing Standards in the prior year. Recommendation: Improve the Organization?s financial reporting internal controls to prevent these types of adjustments from occurring in the future. Document which accounting procedures are needed to be completed on a recurring basis to detect material adjustments.