CUMBERLAND HEALTHNET

Condition & Criteria: Significant misstatements were noted during the audit. Effective internal controls include the Organization?s controls over the financial close process. Cause: The internal control structure of the Organization has focused primarily on the objective of effectiveness and efficiency of operations. Effect: Significant misstatements were detected, resulting in a material weakness. Auditor's Recommendation: While this is not unusual for organizations of similar size, the Organization should assess the adequacy of the design of its policies and procedures related to the financial close process and design appropriate controls as necessary. Views of Responsible Officials and Planned Corrective Actions: The current year presented some challenges with significant new grant funding and resulting growth, as well as employee turnover. At the end of the fiscal year, the Organization increased the responsibilities of its outsourced accountant to assist and improve controls. We have and will continue to improve our controls over the year-end financial close process.

The current year presented some challenges with significant new grant funding and resulting growth, as well as employee turnover. At the end of the fiscal year, the Organization increased the responsibilities of its outsourced accountant to assist and improve controls. We have and will continue to improve our controls over the year-end financial close process.