Finding Text
2024-001 - General Ledger Maintenance
Condition: Several material client prepared journal entries were provided during the audit process
and a material audit adjustment was required to present the financial statements and schedule of
expenditures of federal awards in accordance with accounting principles generally accepted in the
United States of America and the Uniform Guidance, respectively.
Criteria: An effective system of internal controls allows management or employees, in the normal
course of performing their assigned functions, to prevent, detect and correct misstatements on a
timely basis.
Effect: Significant adjustments that were material in the aggregate in relation to the financial
statements were not detected and recorded on a timely basis.
Cause: Timely reconciliation of certain general ledger accounts was not performed by management.
As a result, material adjustments were required to be made to the Organization's financial statement
accounts.
Recommendation: We recommend the Organization review its policies and procedures to ensure
that all account balances and transactions are periodically reviewed for proper treatment in
accordance with accounting principles generally accepted in the United States of America.
View of Responsible Officials and Planned Corrective Actions: The Organization is continuing to
hire full time accounting and finance personnel with experience in not-for-profit accounting and
government reporting compliance. The Organization has Implemented key internal controls to
ensure the completeness and accuracy of financial information. This includes establishing robust
general ledger reviews and timely preparation of accounting reconciliations. Additionally, the
Organization is establishing quarterly review practices to ensure timely review of general ledger
activity, timely requests for grant reimbursement, and accuracy of grant revenue and expense
information.