To remediate this weakness and strengthen financial reporting, management will implement the following: 1. Monthly Close & Reconciliation Calendar – Establish a documented month-end close checklist with due dates and owners for all key reconciliations (cash, A/R, A/P, payroll liabilities, grants/gra...
To remediate this weakness and strengthen financial reporting, management will implement the following: 1. Monthly Close & Reconciliation Calendar – Establish a documented month-end close checklist with due dates and owners for all key reconciliations (cash, A/R, A/P, payroll liabilities, grants/grant receivables, fixed assets, debt, accrued expenses). 2. Trial Balance–to–GL Tie-Out – Implement a standardized tie-out package requiring each balancesheet account to be supported by a reconciliation that agrees to the detailed GL and the trial balance; variances >$0 must be researched and resolved before closing. 3. Document Standards – Adopt minimum documentation requirements (e.g., bank statements, reconciliations, inventory roll-forwards, grant schedules, amortization/support for accruals) and a centralized digital filing structure to ensure audit-ready support. 4. Adjusting Entry Controls – Require preparer/reviewer sign-off for all journal entries, with written support attached (calculation, source documents) and a monthly summary review by the CFO. 5. Grants & Receivables Subledger – Implement (or remediate) a grants/AR subledger that agrees monthly to the GL, including aging, award mapping, and reconciliation to external funder reports. 6. Training & Accountability – Provide training to finance staff on the close checklist, reconciliation standards, and documentation requirements; performance goals will include timely, accurate completion of assigned reconciliations. 7. Oversight & Governance – Provide the Audit/Finance Committee with a monthly close status report (checklist completion, unreconciled items, and corrective items) until the weakness is fully remediated. 8. Transitional Support – Engage temporary external accounting support, as needed, to clear priorperiod backlogs and to assist with initial implementation of the close process.