Finding Text
Criteria: Internal controls of an entity should include reconciliation of accounts in the general ledger to supporting schedules and prior year audit. This allows management to identify and correct misstatements in a timely manner and make informed decisions regarding the operations of the entity. Cause: Due to general ledger posting issues, primarily the result of 2024 transactions that were posted to the general ledger with 2025 posting dates, supporting schedules for certain general ledger accounts were not correctly prepared or reconciled in a timely manner. Effect: There were inconsistencies in accounting for transactions and unnatural balances that resulted in materia misstatements of the financial statements before audit adjustments. Recommendation: We recommend that management perform regular monitoring and reconciliation of all accounts in the general ledger to the respective supporting schedules and subledgers. Differences should be investigated and corrected in a timely manner. BRHC believes that the underlying issue has been corrected by aligning general ledger posting dates with the actual transaction dates in the accounting system so that amounts are captured in the proper period moving forward. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.