Finding 1162172 (2024-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-11-10

AI Summary

  • Issue: The Commission is not reconciling bank accounts on time, affecting cash management.
  • Requirements: Timely bank reconciliations are essential for effective internal controls and error correction.
  • Follow-up: Implement a monthly reconciliation policy with backup processes to ensure continuity during staff turnover.

Finding Text

Criteria: Bank reconciliations are a key part of an organization’s internal control system for cash management. Condition: The Commission is not timely reconciling the bank accounts. Cause: The Commission had staff turnover in the finance position and did not have sufficient controls and redundancies to allow all accounting functions to be performed on a timely basis. Effect: The Commission’s cash management was not operating effectively which made it more difficult to identify and correct errors and resulted in numerous audit adjustments to correct posting errors. Recommendation: The Commission should implement controls to ensure that all bank accounts are reconciled each month as soon as the bank statement is received. Views of responsible officials and planned corrective actions: The CFO will develop a policy for how bank reconciliations will occur monthly and to be jointly signed by the CFO and the Executive Director. The policy will contemplate a vacancy in the positions and propose a backup process for bank reconciliations.

Corrective Action Plan

Finding Reference Number: 2024- I Description of Finding: The Commission is not timely reconciling the bank accounts. The Commission had staff turnover in the finance position and did not have sufficient controls and redundancies to allow all accounting functions to be performed on a timely basis. Statement of Concurrence or Nonconcurrence: The auditee agrees with these recommendations and has taken the necessary steps to prevent a re-occurrence as of October of 2025. Corrective Action: The CFO will develop a policy for how bank reconciliations will occur monthly and to be jointly signed by the CFO and the Executive Director. The policy will contemplate a vacancy in the positions and propose a backup process for bank reconciliations. Name of Contact Person: Projected Completion Date: November 30, 2025

Categories

Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1162169 2024-001
    Material Weakness Repeat
  • 1162170 2024-002
    Material Weakness Repeat
  • 1162171 2024-003
    Material Weakness Repeat
  • 1162173 2024-002
    Material Weakness Repeat
  • 1162174 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $455,942
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $274,899
11.419 COASTAL ZONE MANAGEMENT ADMINISTRATION AWARDS $250,316
11.303 ECONOMIC DEVELOPMENT_TECHNICAL ASSISTANCE $64,004
66.419 WATER POLLUTION CONTROL STATE, INTERSTATE, AND TRIBAL PROGRAM SUPPORT $57,080
20.505 METROPOLITAN TRANSPORTATION PLANNING AND STATE AND NON-METROPOLITAN PLANNING AND RESEARCH $54,304
66.466 CHESAPEAKE BAY PROGRAM $45,230
97.047 PRE-DISASTER MITIGATION $24,940
97.039 HAZARD MITIGATION GRANT $16,831
90.705 LDD CAPACITY BUILDING $1,701