Finding Text
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 in this audit report.