FULTON THEATRE COMPANYNon-Profit

Financial Statement Findings Finding 2022-001 Oversight of the Financial Reporting Process Criteria Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements and footnote disclosures in the financial statements, in accordance with U.S. GAAP. Condition The Theatre does not currently have a system of internal controls that would enable management to conclude that the financial statements and related footnote disclosures are complete and presented in accordance with U.S. GAAP. Effect There is the potential that management may report materially misstated financial statements due to this internal control not being in place. Cause Management is able to review the statements for accuracy in relation to its internal records and can update the note disclosures based on a prior year template. The outsourcing of the financial statement presentation services is a result of management's cost benefit decision to rely on accounting expertise outside the Theatre rather than incurring this internal resource cost. Recommendation Management should continue to evaluate the cost benefit of implementing an internal control process to determine the proper presentation and completeness of the financial statements and related note disclosures in accordance with U.S. GAAP, compared to continuing to outsource the financial statement presentation process.