View of Responsible Officials and Corrective Action Plan – Upon receiving notification from the management company that the accounting department had inadvertently invoiced the academy for a duplicate amount dissimilar to an invoice provided in a previous month, the academy conducted a detailed review in collaboration with the finance team.
1. Root Cause Analysis: The academy conducted a root cause analysis to identify the underlying factors contributing to the finding. This analysis helped pinpoint that the management company was experiencing unexpected internal staffing issues throughout the conclusion of the fiscal year within their accounting department.
2 Action Plan: The issue has been reconciled as of August 30, 2023. The academy, in collaboration with the management company, has developed a comprehensive action plan outlining the specific steps that will be taken to prevent this issue from happening again.
3 Implementation: The management company has notified the academy that it has begun the implementation of the action plan, including process improvements and staff reconfigurations.
4. Monitoring and Oversight: The academy, along with the management company, has established an improved monitoring and oversight method to ensure internal audits and management reviews will be conducted periodically to ensure sustained compliance and effectiveness.
5. Preventive Measures: To prevent similar issues from arising in the future, additionally, the management company is implementing preventive measures, including additional staffing, staff training, process enhancements, and increased oversight.
The academy is committed to resolving this finding promptly and effectively, and values the recommendations provided by the audit team and views this process as an opportunity to strengthen internal controls and enhance overall operations in collaboration with the management company.