Finding 1106725 (2024-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-26

AI Summary

  • Core Issue: The organization is not preparing monthly bank reconciliations for all cash accounts, including reserves.
  • Impacted Requirements: This lack of reconciliation can lead to undetected errors or irregularities in financial records.
  • Recommended Follow-Up: Management should implement monthly reconciliations and promptly investigate any discrepancies with the general ledger.

Finding Text

Preparation of Bank Reconciliation Our audit revealed that the organization does not prepare a formal monthly bank reconciliation for all cash accounts including the reserve accounts. In addition, we noted several transactions that were not recorded properly to the general ledger. A strong system of internal controls incorporates monthly bank reconciliations which should be prepared and agreed to the general ledger. In addition, any discrepancies should be investigated and resolved in a timely matter. Failure to reconcile cash accounts monthly could result in errors or irregularities to go undetected. Recommendation We recommend that management prepare monthly bank reconciliation on timely basis and investigate any discrepancies from the general ledger.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 530283 2024-001
    Material Weakness
  • 530284 2024-002
    Material Weakness
  • 530285 2024-003
    Significant Deficiency
  • 530286 2024-004
    Significant Deficiency
  • 530287 2024-001
    Material Weakness
  • 530288 2024-002
    Material Weakness
  • 530289 2024-003
    Significant Deficiency
  • 530290 2024-004
    Significant Deficiency
  • 1106726 2024-002
    Material Weakness
  • 1106727 2024-003
    Significant Deficiency
  • 1106728 2024-004
    Significant Deficiency
  • 1106729 2024-001
    Material Weakness
  • 1106730 2024-002
    Material Weakness
  • 1106731 2024-003
    Significant Deficiency
  • 1106732 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.56M
14.195 Project-Based Rental Assistance (pbra) $267,334