Finding Text
Finding #2024-003 – Cash Reconciliations (Prior Year Finding #2023-003)
Condition: The main checking account of the District was not reconciled to the general ledger in a timely manner throughout 2023-2024.
Effect: Not reconciling cash accounts on a timely basis could lead to errors or other problems not being recognized and resolved in a timely manner. General ledger cash balances should be reconciled to monthly bank statements shortly after bank statements are received.
Cause: The District’s main checking account was not reconciled to the general ledger on a monthly basis throughout the year.
Criteria: Internal controls should be kept in place to make sure that cash is reconciled timely and that reconciliations are tied to the general ledger on a monthly basis.
Recommendation: We recommend the District develop procedures to reconcile all cash accounts to the general ledger in a timely manner. The reconciliations should be reviewed by someone other than the person preparing the reconciliation. The reviewer should initial and date the reconciliations when the review is complete.
Response: The District will begin reconciling cash to the general ledger on a timely basis during the 2024-2025 fiscal year.