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Final Report - Audit of the Commission's FY 2025 Financial Statements - OA-2025-02

Report Information

Date Issued
Report Number
OA-2025-02
Report Type
Audit
Description
The Office of Inspector General (OIG) contracted with the independent certified public accounting firm Harper, Rains, Knight, & Company, P.A. (HRK) to audit the Commission’s financial statements and related footnotes as of September 30, 2025.  The contract requires that the audit be performed in accordance with U.S. generally accepted government auditing standards Office of Management and Budget audit guidance, Government Accountability Office/Council of the Inspectors General on Integrity and Efficiency Financial Audit Manual, and Audit Requirements for Federal Financial Statements.  HRK found: The financial statements present fairly, in all material respects, the Commission's financial position as of September 30, 2025, and its net cost of operations, changes in net position, and budgetary resources for the fiscal years then ended in accordance with accounting principles generally accepted in the United States of America. One material weakness related to the Commission not having appropriate controls in place to review the validity of material financial adjustment transactions recorded by their service provider on their behalf.While the report includes one material weakness related to a gap in controls over financial reporting by a shared service provider, HRK’s objective was not to provide an opinion on the effectiveness of the Commission's internal control or compliance. The Inspector General Act of 1978, as amended, requires that the Inspector General take appropriate steps to ensure that any work performed by non-Federal auditors complies with the auditing standards established by the Comptroller General. We evaluated the independence, objectivity, and qualifications of the auditors and specialists; reviewed the plan and approach of the audit; monitored the performance of the audit; sought and obtained clarification of the auditor's methodology and findings; and reviewed HRK's reports and related audit documentation. HRK is responsible for the attached independent auditor’s report and the conclusions expressed therein. The OIG does not express opinions on the Commission’s financial statements or internal control over financial reporting, or conclusions on compliance or other matters. The audit report provides an opinion on the Commission’s financial statements and communicates reporting requirements on internal control over financial reporting and compliance with laws and regulations.
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View report on Oversight.gov

Recommendations

The Commission should determine the risks associated with non-standard adjustments in its financial reporting process and develop and document appropriate controls to review and validate those non-standard transaction outputs on the aging reports created by their service provider. At a minimum, the Commission should:
• Establish a dollar value threshold to review all balances without identifying contract and vendor fields, recorded on the monthly aging reports provided to the Office of the Chief Financial Officer and the OIG and
• Review and verify all material non-standard adjustment transactions (JVs, SVs, RVs, and BB transactions) recorded without identifying contract and vendor fields on a periodic basis and prior to yearend close. In addition, the Commission should document these controls in order to maintain continuity of procedures each year.
The Commission should instruct its shared service provider to record on-top adjustments to reduce the $599,191 and $298,812 balances from SGL 4801.11. The Commission and its shared service provider should fully research the cause of the $599,191 and $298,812 SVs to determine if correcting entries are required in FY 2026.