Finding Text
Criteria: Maintenance of the general ledger is critical to accurate and reliable financial reporting.
Condition: The Club implemented a new general ledger software system in May 2023 and experienced
significant difficulties in transferring beginning balances, entering current transactions timely and
accurately, as well as reconciling key accounts. In particular, after the implementation, monthly bank
account reconciliations were not completed until late 2024.
Cause: The Club was not prepared to implement the new software and did not have adequate
resources to deal with the difficulties encountered and routine accounting functions.
Effect: The Club had significant unrecorded or improperly recorded transactions in the general ledger
which resulted in a significant adjustment to the cash account balance and other accounts that were
material to the financial statements.
Response: See Corrective Action Plan.