Finding Text
Lack of Separate Cash Accounts for Southern Colorado Community Lending
Material Weakness
Condition: The inability to automate intercompany transactions and the lack of monthly reconciliations of intercompany balances make it difficult to determine the correct year-end cash balance.
Criteria: Adequate internal control functions over the financial reporting process.
Cause: Oversight by management.
Effect: Inaccurate financial reporting that compromise the accuracy and transparency of financial reporting between the entities.
Recommendation: We recommend further separation of cash balances in SCCL, monthly reconciliations of intercompany balances, and timely settlement of intercompany balances.
View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.