Finding Text
Criteria: Proper fiscal year-end accounting procedures are important to ensure that all financial activity for the year is accurately recorded in the financial statements. A proper year-end process should include account reconciliations for significant general ledger accounts. These procedures should include all funds within the School District. Condition: The School District lacks consistent year-end closing procedures to ensure accurate and timely financial reporting.
Cause: The School District did not complete its year-end closing process for the fiscal year. Account reconciliations were incomplete, and financial statement amounts were not properly reconciled to detailed cost reports, specifically for federal revenues. Additionally, there appears to be ineffective management oversight of the year-end reporting process .Effect: Failure to complete year-end closing procedures caused delays in the audit process as well as significantly increased the risk of material misstatement within the financial statements. Recommendation: The school board and management should review and update year-end accounting procedures and increase oversight over the process to ensure timely completion and proper financial reporting. Response: The School District acknowledges this finding. A corrective action plan to address this finding has been developed and is included with the annual report.