Finding Text
Criteria: Internal controls of an entity should include reconciliation of accounts in the general ledger to supporting schedules and prior year audit. This allows management to identify and correct misstatements in a timely manner and make informed decisions regarding the operations of the entity. Cause: Due to significant turnover in the financial reporting and accounting function, supporting schedules for certain general ledger accounts were not prepared or reconciled in a timely manner. Effect: There were inconsistencies in accounting for transactions and unnatural balances that resulted in material misstatements of the financial statements before audit adjustments. Recommendation: We recommend that management perform regular monitoring and reconciliation of all accounts in the general ledger to the respective supporting schedules and subledgers. Differences should be investigated and corrected in a timely manner. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.