Finding Text
Criteria: Bank reconciliations are important to the Organization’s internal control and are used to ensure all cash transactions are recorded and to help identify errors. Condition: Bank reconciliations were not performed for any of the Organization’s bank accounts during the year ended June 30, 2025. Cause: The Organization did not allocate adequate resources of qualified accounting personnel to the task of completing and reconciling bank accounts of the Organization to its QuickBooks financial records. Effect: The auditors identified several misstatements in the initial financial records, which necessitated adjusting journal entries to ensure the accuracy of the financial statements. Recommendation: Additional resources should be allocated to accounting so that the bank reconciliations are completed for all accounts every month in a timely manner.