Amskills, Inc.

During the current year audit testing procedures, certain revenue recognition and donation reconciliation issues were noted. These issues were not initially identified by the Organization’s accounting process and procedures, resulting in adjustments to accounts receivable and revenue. We recommend that management follow the internal controls established in its Accounting Policies and Procedures handbook, and consider implementing additional control procedures, including, but not limited to, the following annual and monthly review procedures. Annual Procedures: • We recommend that management implement additional cutoff review procedures at the end of each reporting period to ensure revenue, billings, and expenses are recorded in the proper period. Monthly Procedures: • We recommend that management implement additional cutoff review procedures at the end of each month to ensure revenue, billings, and expenses are recorded in the proper period.

Throughout the current year audit planning and testing procedures, several accounts were not reconciled to supporting reports which resulted in numerous journal entries. These unreconciled amounts were not initially identified by the Organization?s accounting process and procedures, resulting in adjusting entries to accounts receivable, fixed assets, accrued and other current liabilities, net assets, revenue and various expense accounts. The general ledger detail, as well as the underlying support, is the source from which the Organization?s financial statements and related grant reports are prepared. It is also the basis upon which those charged with governance monitor the Organization?s compliance with applicable regulations and make informed decisions related to the Organization?s ability to achieve its stated purpose. Therefore, the accuracy of the financial records within the general ledger and the related support is fundamental to the Organization?s ability to achieve its stated purpose and to remain in compliance with applicable regulations. We recommend that management follow the internal controls established in its Accounting Policies and Procedures handbook, and consider implementing additional control procedures, including, but not limited to, the following annual and monthly review procedures. Annual Procedures: - Review additions to capitalized assets to ensure proper capitalization or expensing of asset costs in accordance with the Organization?s policy and generally accepted accounting principles. - Implement additional cutoff review procedures at the end of each reporting period to include a review of all purchase orders and invoices outstanding as of year-end to determine whether a liability and expense have been incurred as well as a reconciliation of cash disbursements subsequent to reporting period end to proper inclusion or exclusion from accounts payable ledger as of period end date. - Review any necessary adjustments for accrual-basis accounting, such as accrued payroll, at least annually. - Prepare a complete schedule of expenditures of federal awards on the accrual basis. Monthly Procedures: - Reconcile material accounts, review general ledger activity and create necessary supporting schedules. - Reconcile payment applications from contractors with retainage to ensure proper recording of expenses and contract liabilities. - Review documentation for capitalized expenses to ensure documentation is retained.

During audit procedures, a lack of indirect cost allocation was noted. The costs allocated to programs affect the reimbursement of expenses and the presentation of expenditures by program in the statement of functional expenses for financial statement users. A lost opportunity for cost reimbursement with the Department of Labor was noted due to this lack of indirect cost allocation. We recommend the Organization create a formal policy for the allocation of indirect costs to appropriately reflect total expenses for each program.

Due to the level of federal funding received, the Organization was required to have a Federal single audit. The deadline to submit the single audit to the Federal Audit Clearinghouse is the earlier of 1) 30 calendar days after receipt of the audit report and 2) nine months after the end of the audit period. As of the date of our audit report, the Organization has not completed the Federal Audit Clearinghouse submission for fiscal year 2022. Additionally, due to the level of state funding received, the Organization was required to have a state single audit. The deadline to submit the single audit to the Florida Auditor General is the earlier of 1) 45 calendar days after receipt of the audit report and 2) nine months after the end of the audit period. As of the date of our audit report, the Organization has not completed the Florida Auditor General submission for fiscal year 2022. We recommend that the Organization continue to bring accounting records up-to-date and submit the late filings as soon as possible after receiving the final audit report. Additionally, we recommend that the Organization begin to file their reporting submissions in a timely manner.