Finding 1130727 (2023-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2025-04-07

AI Summary

  • Core Issue: Bank accounts were not reconciled at year-end, risking inaccurate cash balance reporting.
  • Impacted Requirements: Regular reconciliations are essential for accurate financial records and compliance.
  • Recommended Follow-up: Ensure timely reconciliations align with financial reporting; explore options with the bank for better statement closing dates.

Finding Text

Failure to Reconcile Bank Accounts - Condition: During the course of the audit, we noted that the bank accounts are not reconciled at year-end to ensure proper cutoff and reporting of cash balances at December 31. Criteria: Regular reconciliation of bank accounts is a critical internal control that ensures the accuracy of financial records. Effect: Without timely reconciliations, the following could occur: a. The Organization risks misstating tis financial position, which may lead to incorrect decision-making by management. b. Unreconciled transactions may conceal unauthorized or fraudulent activity, increasing the risk of financial lossc. c. Unresolved discrepancies can lead to operational inefficiencies, including delays in financial reporting and additional time spent investigating historical transactions. d. Failure to maintain accurate financial records may result in non-compliance with regulatory requirements Recommendations: The Organization should ensure bank reconciliations are performed in alignment with the financial reporting period. Corrective Action: The Organization is working with their financial institution to see if statement closing dates can better align with the reporting period. The Organization will perform the reconciliation if no changes can be made with the bank.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 554285 2023-001
    Significant Deficiency Repeat
  • 554286 2023-002
    Significant Deficiency Repeat
  • 1130728 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $879,592
10.559 Summer Food Service Program for Children $199,706