Finding Text
#2023-001 FINDING: Financial Statement and Schedule of Expenditures of Federal Awards (SEFA) Preparation
Federal Program Affected: Economic Adjustment Assistance – 2021 CARES Act RLF, Assistance Listing #11.307.
Compliance Requirement: Reporting.
Questioned Costs: None.
Condition and Cause: We were requested to draft the audited financial statements, related footnote disclosures, and
SEFA as part of our regular audit services. Ultimately, it is management’s responsibility to provide for the preparation
of the Organization’s statements, footnotes, and SEFA, and the responsibility of the auditor to determine the fairness
of presentation of those statements. From a practical standpoint, we do both for you at the same time in connection
with our audit. This is not unusual for us to do this with organizations of your size.
Criteria and Effect: This control deficiency could result in a material misstatement to the financial statements or SEFA
that would not be prevented or detected by your Organization’s internal control system.
Repeat Finding from Prior Year: Yes, prior year finding #2022-001.
Recommendation: We have instructed management to review a draft of the auditor prepared financial statements and
SEFA in detail for their accuracy. 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.
Views of Responsible Officials Corrective Action Plan: See Organization’s Corrective Action Plan