Type of Finding:
Condition: The financial statement audit was delayed as the University did not timely close its books and records for the fiscal year 2024.
Criteria or specific requirement: Internal controls are critical to ensure accurate and timely financial reporting. These would include, but not limited to, a closing policy that ensures all significant accounts are reconciled and adjusted on a timely basis.
Effect: The year end audit was not completed on a timely basis and deadlines related to continuing disclosure requirements were not met.
Cause: There are no formal policies and procedures to ensure timely fiscal year end close process.
Repeat Finding: Yes, 2023-001.
Recommendation: We recommend management perform assessment of the current controls, processes and personnel within the accounting department and make changes and additions where needed to facilitate timely and accurate financial reporting.
Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
2024 – 002 – Account Reconciliations and Documented Processes
Type of Finding:
Condition: The University does not have a policy that requires that a close of financial records be completed monthly or quarterly during a fiscal year. The University does not have a comprehensive business procedures manual documenting the processes and controls for all significant financial cycles.
Criteria or specific requirement: Internal controls are critical to ensure accurate financial reporting. These would include, but not limited to, reconciling statement of net position accounts monthly, a formal process of procedures and internal controls to ensure timely and accurate year-end financial statements and related notes and providing supporting audit documentation that reconciles to the trial balance under audit on a timely basis.