Finding 1206608 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-04-14
Audit: 398696
Organization: Bishop's Commons, Inc. (NY)
Auditor: BONADIO & CO LLP

AI Summary

  • Core Issue: Major general ledger accounts were not fully reconciled at year-end due to staffing shortages.
  • Impacted Requirements: Timely and accurate reconciliations are essential for effective internal controls over financial reporting.
  • Recommended Follow-Up: Management should review and improve reconciliation policies to address gaps and ensure timely completion.

Finding Text

2024-001 - Account Reconciliations Criteria: An effective system of internal controls over financial reporting requires consistent, timely reconciliations of major general ledger accounts. Condition: Several general ledger accounts were not fully reconciled at year end. Cause: Staffing shortages and turnover continued to put strain on the finance department by requiring existing staff to perform multiple job responsibilities. This caused a lack of time to perform complete and accurate reconciliations on a timely basis. Effect: Several accounts were not completely reconciled, causing a delay in the completion of the audit. Recommendation: We continue to recommend management review its current reconciliation policies and procedures to identify any gaps in process or changes in responsibilities in an effort to complete general ledger reconciliations on a timely basis. It will also improve the accuracy and timing of the financial information presented to the Board of Directors on a regular basis throughout the year.

Corrective Action Plan

Management agrees with the recommendation. All updates and appropriate changes have been implemented at the time of this response. We developed a reconciliation process that includes all reconciliations that are done in the recommended time frames after the standard entries are done. This revised policy has been communicated to the appropriate individuals as a means of reiterating the importance of complete and accurate reconciliations.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1206609 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.129 MORTGAGE INSURANCE NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES $4.86M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $90,569