Finding Text
Bank Reconciliations Criteria: Bank reconciliations are important to the Organization’s internal control and are used to
ensure all cash transactions are recorded and to help identify errors.
Condition: Bank reconciliations were not performed for any of the Organization’s bank accounts
during the year ended June 30, 2024.
Cause: The Organization did not allocate adequate resources of qualified accounting personnel to the
task of completing and reconciling bank accounts of the Organization to its QuickBooks financial
records. Effect: The auditors identified several misstatements in the initial financial records, which necessitated
multiple adjusting journal entries to ensure the accuracy of the financial statements.
Recommendation: Additional resources should be allocated to accounting so that the bank
reconciliations are completed for all accounts every month in a timely manner.
Management Response: The Organization will begin performing bank reconciliations for all accounts
held by the Organization ensure accuracy between bank statement balances and amounts recorded in
QuickBooks. The Organization will also look into hiring an independent accountant to assist with
financial statement preparation.