Finding Text
Financial Statement Finding 2022-001 Criteria: Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with accounting principles generally accepted in the United States. Condition: The Center's internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ended April 30, 2022, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because the Center relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in the Center's internal controls. Cause: The Center relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects: The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of the Center as its internal staff. Auditor?s Recommendation: Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of responsible officials and planned corrective actions: The Center does not have the resources and staff to prepare the financial statements and disclosures but will continue to oversee the auditor?s services and review and approve the financial statements and footnotes.