Finding Text
Audit Adjustments: Criteria and Condition: Material audit adjustments were necessary for the financial statements to be presented in accordance with accounting principles generally accepted in the United States of America. Cause: The City does not have the resources to prepare all required adjusting entries necessary in preparing financial statements. Effect: Audit adjustments were necessary to correct material misstatements noted during the audit for the financial statements to be in compliance with GAAP. Recommendation: The Organization should review internal controls currently in place and improve internal controls over financial reporting which will prevent, or detect and correct, misstatements to the financial statements. View of Responsible Officials: Management of the Organization is in agreement with the finding.