Finding Text
Condition: Credit card statements were not recorded in the general ledger. Criteria: A list of credit card charges is generated by the Director of Administration each month and given to the President for review and approval. The amount on that list is then recorded in the general ledger and then paid by the Director of Administration. Cause: The Director of Administration followed the required procedures except for recording the expenses. Effect: Expenses and liabilities were understated by $16,544. Recommendation: The Director of Administration should verify that the outstanding balance on the credit card statement agrees with the balance in the general ledger each month. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the findings and will add credit card reconciliation to the monthly procedures to be performed