Focused
on YOU
Clean Energy Alliance
Fiscal Year 2021/22 Financial Audit
www.lslcpas.com
Overview of the Audit
• LSL has been engaged by CEA to perform a financial audit over the financial statements.
• Conducted the week of September 26th
• Goal is to render an “opinion” on whether the amounts reported in the financial statements are reliable in all material respects. www.lslcpas.com
Overview of the Audit
• What the Audit is Not:
– Primarily a search for fraud or misappropriation of assets. • Although we are required to be always be cognizant of and consider the possibility such things, they are not our primary goal. We are required to report on them if they are identified or brought to our attention during our audit.
– An evaluation of the operational results of an organization. • If we believe there is significant risk that the organization will fail financially within 12 months after reporting date, we will report on it. However, making judgment calls on normal year-over-year operating results (e.g., doing better or worse) is not within the scope of a financial audit. www.lslcpas.com
Audit Report
• Unmodified Opinion:
– Opinion was rendered on November 14, 2022
– The financial statements can be relied upon and are materially correct as of June 30, 2022
• Basis for Opinion:
– Generally accepted auditing standards
– Government Auditing Standards
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Audit Report
• Emphasis of Matter:
– Comparative financial statements
• Responsibilities of Management:
– Preparation and presentation of financial statements
– Design and implementation of internal controls
– Consideration of going concern (will CEA be financially viable for the next 12 months?)
www.lslcpas.com
Audit Report
• Responsibilities of Auditor:
– Obtain reasonable, not absolute, assurance that the financial statements are free from material misstatement due to fraud or error
– Exercise professional judgment and maintain professional skepticism – Identify risks of material misstatement and develop audit procedures to respond to the risks
– Obtain and understanding of internal control in order to design audit procedures. – Evaluate appropriateness of accounting policies and estimates – Evaluate CEA for going concern
– Communicate with those charged with governance
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Audit Report
Other Reporting Requirements
• Required Supplementary Information:
– Perform limited procedures to management’s discussion and analysis including inquiries, comparisons to basic financial statements, reviewing for consistency with prior years, and other expectations.
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Report on Internal Control and Compliance
• This report is required by Government Auditing Standards for the purpose of reporting significant deficiencies or material weaknesses in internal controls or material noncompliance with laws, regulations, grant agreements, bond covenants, contracts, etc.
• No findings were reported for FY2021/22.
www.lslcpas.com
Other Required Communication
• Significant Accounting Practices
– No changes to accounting policy
– No significant estimates to report
• Significant or Unusual Transactions
– None to report
• Difficulties Performing Audit, Misstatements, or Disagreements with Management
– None to report
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Summary of Results
• Unmodified (“clean”) audit opinion was rendered.
• No significant deficiencies or material weaknesses in internal controls were identified.
• No material noncompliance with laws, regulations, grant agreements, and contracts were identified.
• No audit adjustments were required.
• No difficulties conducting audit or disagreements with management about accounting policies occurred.
Focused
on YOU
Ryan Domino, CPA, Partner
[email protected]