Finding 966220 (2023-001)

Finding 2023-001 - Material Weakness - Required Material Adjustments Criteria: Management is responsible for reconciling the accounts at end of year and ensuring accounting records are kept in accordance with generally accepted accounting principles (GAAP). Condition: There were insufficient internal controls over financial reporting requiring material audit adjustments during the audit to prevent the financial statements from being materially misstated. Cause: Due to staffing turnover and shortages, all required entries needed were not recorded and management relied on auditors to propose entries after audit procedures. Effect or potential effect: Adjustments required were due to staffing turnover issues. The risk with this condition is that the financial statements could be material misstated, and there is no control in place to detect and correct this condition Recommendation: The College and accounting industry in general have had some significant staffing issues over the past few years that have led to the issues noted. The College needs to:  Assess accounting staff to ensure you have the correct number for size of the College and proper skill set.  Ensure processes and internal controls are documented and staff has appropriate training. Repeat finding: Yes. Prior year finding number 2022-001. The College continued to have staffing issues. Views of responsible officials: See attached.