Finding Text
Reconciliation of Cash
Year ended June 30, 2024
Conditions and criteria: In prior years, bank reconciliations were being prepared but not agreed to cash balances within the District’s general ledger which resulted in differences, many of which were transfers between the general, tax and payroll checking accounts. This condition continued through March 2024, at which time the District began reconciling these bank statements with its general ledger beginning with the month of July 2023 through the end of the current fiscal year, whereby differences were investigated and corrected. The District also has certain investment accounts (CDS and fund held in PLGIT and PSDLAF). These accounts, which mostly had interest earnings and new bond proceeds, were not reconciled during the year.
Cause and Effect: The effect of not comparing bank reconciliations against the District’s general ledger balance is that reporting errors in posting cash receipts and disbursements can occur and not be detected or resolved in a timely manner.
Auditors’ Recommendation: The District should continue to perform reconciliations similar to that instituted in March 2024. In addition, investment accounts should be included in the monthly reconciliation process so that activity within these accounts is properly reported in a timely manner.
School District’s response: The Business Manager has established a reconciliation schedule which requires reconciliations to be completed by the end of the following month and will continue with processes put in place in March 2024 for all accounts.