Finding Text
Condition: The District's cash accounts were not reconciled accurately. Criteria: A properly designed system of internal controls includes timely and accurate financial reporting, including reconciliation of bank accounts. Effect: As a result of this condition, there is a higher risk that errors or misappropriations could occur and not be detected in a timely manner. Cause: The District's personnel complete a monthly reconciliations, but it is not balanced to the general ledger. Recommendation: When completing the monthly bank reconciliatins, the Finance Administrator should compare general ledger and bank transactions, focusing on blanancing monthly deposits and electronic fund transfers. In addition, a policy should be created to have the reconciliations reviewed monthly by the Board. Response: The District will update the police and procedures for posting of cash transactions and bank reconciliations, including setting roles of those involved, implemening new reporting for ACH transactions, daily postings, and monthly Board reviews.