CORRECTIVE ACTION PLAN
Finding 2023-001 General Ledger Accuracy
The due date of the original draft trial balance to begin the audit has limited the staff ability to ensure all entries and adjustments are made prior to submitting. In addition, the finance department underwent significant changes at ...
CORRECTIVE ACTION PLAN
Finding 2023-001 General Ledger Accuracy
The due date of the original draft trial balance to begin the audit has limited the staff ability to ensure all entries and adjustments are made prior to submitting. In addition, the finance department underwent significant changes at the end of the fiscal year with transitioning to new leadership and 100% staff turnover throughout the closing period. Going forward, management will ensure an accurate timely year end closing as follows:
Monthly Closing Process - Finance will be implementing a formal monthly closing process, managed directly by the Controller, and using deadlines and checklists to make sure all expenses are settled properly and timely. All regular monthly reconciliation processes will be assigned to specific positions and actively managed by the controller and overseen by the finance director. A report on the monthly closeout process will be provided to the CEO by the 20th of each month.
Annual Closing Process - CSA management will meet with auditors to develop a closing timeline that will allow more adequate time to complete the final draft trial balance. The finance director and controller will set deadlines and assignments for specific closing tasks and a hard deadline for final closing and time for the finance director to perform a closing review of financials.
Renee Olson, CSA Finance Director, will be the individual primarily responsible for implementing this corrective action. Estimated date of completion is January 31, 2024.
Finding 2023-002 Equipment and Real Property Management
Management intends to add additional measures to identifying capital assets so that there is not an overreliance on the general ledger review. An accounting manager position has been created and filled within the past 3 months with the responsibility of inventory management and updating property records to include all required information. The finance director will maintain a separate folder of all invoices over $5,000 to be considered for capitalization. The general ledger will be further examined each month to ensure all items have been properly identified going forward. The list of assets to be capitalized will be reviewed by the Finance Director and Program Managers quarterly to ensure all assets are properly identified for annual capitalization and depreciation and that all required information is recorded.
Renee Olson, CSA Finance Director, will be the individual primarily responsible for implementing this corrective action. Estimated date of completion is February 28, 2024.