Finding Text
Finding 2022-01 – Lack of Internal Control Over Financial Reporting – No Accounting System Used
Criteria – Standard accounting practices dictate that control over financial reporting begins with the use of an appropriate accounting system.
Condition – The Board maintains a budget worksheet and a checkbook with receipts and disbursements downloaded from the bank.
Effect – The Board could not produce a trial balance, balance sheet, or income statement for current or past years.
Recommendation – The Board should immediately consult with an accountant to enter the Board’s financial records into an appropriate accounting system.
Management’s Response – The Board has contracted with a local Accountant to begin entering all Board financial records into Quick Books.