Finding 2023-001
Significant Deficiency over Financial Reporting
Management agrees with the finding. Corrective action plan follows.
The College acknowledges that it did not complete a full close and review of the trial balance accounts by the start of the audit and that multiple trial balances we...
Finding 2023-001
Significant Deficiency over Financial Reporting
Management agrees with the finding. Corrective action plan follows.
The College acknowledges that it did not complete a full close and review of the trial balance accounts by the start of the audit and that multiple trial balances were generated. It acknowledges that net assets were not properly rolled at year end and the balance did not reconcile to the trial balance, and that trial balance adjustments were booked after the close process was completed.
Management has reviewed its yearend close procedures and has implemented the following guidelines to ensure an accurate and timely close:
The College can better prepare for yearend close by reinforcing its month end close procedures. Month end close procedures and reconciliations were inconsistent throughout the year. The College has established a checklist of monthly processes, recurring journal entries, and the support needed to complete the reconciliation process. Reconciling accounts on a monthly basis allows for the identification and correction of errors in a timely manner. Monthly reconciliations are kept on a shared network and can be accessed by all Business Office team members. The VP of Finance will review monthly bank reconciliations to ensure accuracy and timeliness. Net Assets have been reviewed and agreed to the prior year audit report.
The College has a detailed yearend checklist which includes a list of yearend journal entries, and a detailed list of the schedules provided to auditors. The College will prepare a close schedule identifying important dates, activities and responsibilities to ensure items are completed in a timely manner and that all necessary deadlines are met. Yearend schedules are on a shared network drive so that progress and accuracy can be monitored. The VP of Finance will hold regular meetings with the Business Office team to monitor yearend close progress. Once the yearend close has been established, all reports will be reviewed and compared to previous year’s figures to identify any unexpected changes, and agreed to the final trial balance prior to uploading to the audit portal. No adjustments will be allowed once the trial balance has been finalized without consultation with the auditors.
The Business Office team will continue to reevaluate any processes or systems used during the previous yearend closes and update them as needed, such as setting up new accounts, reviewing current statements for accuracy, or revising account coding.
Contact Person:
Kathleen Werner, Interim VP Finance
Completion Date:
June 30, 2024