Finding Text
Condition: Bank reconciliations are not always performed in the subsequent month. Bank reconciliations or copies of bank statements are not reviewed by anyone outside the accounting department. Criteria: Generally accepted control procedures. Cause of Condition: Bank reconciliations are not performed in a timely manner (within subsequent month) and nonaccounting staff are not involved in control procedures surrounding the cash accounts.Effect of Condition: The potential exists for fraud or errors to go undiscovered and uncorrected in a timely manner. Questioned Costs: none. Recommendation: We recommend that bank reconciliations be performed in the subsequent month and also that bank statements (and possibly bank reconciliations) be reviewed by non-accounting staff (District Director and/or Board member). Corrective Action Plan: Beginning January 2026, all bank accounts will be reconciled within 15 business days of month-end. Completed reconciliations and corresponding bank statements will be reviewed and signed by the District Director, with quarterly oversight by the Board. All documentation will be stored electronically for audit verification. The Financial Procedures Manual will be created and updated to reflect these requirements and establish clear timelines and responsibilities for review. Contact Person: Grant Accounting Specialist Anticipated Completion Date: 01/31/2026