Corrective Action Plan 2023:
Alvis, Inc. recognizes that significant turnover in accounting operations and financial reporting
teams resulted in a material number of adjustments, proposed by our accounting firm, in order
to complete the 2022 audit. To properly address this matter, Jacqueline Neal ha...
Corrective Action Plan 2023:
Alvis, Inc. recognizes that significant turnover in accounting operations and financial reporting
teams resulted in a material number of adjustments, proposed by our accounting firm, in order
to complete the 2022 audit. To properly address this matter, Jacqueline Neal has been tasked
with improving upon the corrective actions which began in 2023 in order to comprehensively
address this gap: 1) Fill vacant positions and redefine job responsibilities; 2) Implement an
accounting workflow automation solution; 3} Hold internal trainings to increase our Finance
Team's technical accounting knowledge and operational efficiencies.
Fill vacancies and redefine job responsibilities:
1. The first order of business was to hire a seasoned payroll employee to handle all
functions of payroll processing and recording related journal entries. This role was hired
in September 2023. This was followed with an Accounting Manager and accounts
payable coordinator hires in April 2023, which has resulted in critical accrual accounts
being recorded and reconciled accurately and timely.
2. The team then redefined jobs and responsibilities of each team member, resulting in
much greater communication and understanding around required job functions. This
has resulted in substantial growth in our teamwork and collaboration.
3. The entire month-end close process was redefined with new expectations and tracking.
This has resulted in the closing of the monthly books within 15 days after month end.
Automation of month-end close workflows and centralization of reconciliations:
4. The Finance team implemented an automated accounting workflow software (FloQast or
FQ) in April 2023. FQ allows the Team to streamline recurring tasks, checklists, and
centralized documentation to increase the accuracy of our Close Data. For example, the
system provides the team with a centralized view of the reconciliation status of each
account with balance comparisons to the general ledger, preparers, reviewer, and signoff
dates. Additionally, FQ sends automatic notifications when reconciliations are due,
items are ready for review, or if the platform detects an unexpected out of balance
condition.
Internal accounting trainings
5. The team is in the process of creating an ongoing monthly hindsight meeting to review
the previous month end process. This will be used to identify opportunities and training
needs of the team.
6. The team plans to continue our quarterly lunch and learns which began in July 2023.
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