Finding Text
Condition: During the audit, audit adjustments were recorded that were material to the financial statements. These adjustments were primarily the result of account balances not being reconciled to supporting schedules or underlying documentation on a timely basis. The errors were not detected and corrected by management’s internal controls prior to the financial statement audit. Additionally, it was discovered that reconciliations for certain account balances and transactions were not being performed and Metro United Way was initially unable to reconcile accounting records. Cause: Reconciliations were not performed timely and review procedures were ineffective in identifying discrepancies between the general ledger and supporting documentation. Effect: Management was required to review effected accounts, transactions, and balances to ensure accuracy. This resulted in audit schedules being updated and adjustments to Metro United Way’s financial statements for the year ended April 30, 2025. Recommendation: Ensure that accounts are being reconciled on a regular basis to ensure that account balances are accurate and financial information is complete prior to reporting. Views of Responsible Officials: Metro United Way, Inc. agrees with the finding and the recommendation noted above has been implemented for fiscal year-end April 30, 2026.