Finding 1213968 (2025-001)

The Center has made progress in obtaining additional resources for its accounting department. However, more resources are required throughout the fiscal year to ensure accounts are accurate and complete. In the audit, we identified some accounts that were not properly recorded and classified in the accounting system. In addition, employee incentive awards were not processed through a third-party payroll vendor. The Center subsequently processed the compensation through payroll and paid the applicable payroll taxes. Criteria Accurate accounting records should be maintained so proper management decisions can be made on the organization’s financial condition. Cause The Center does not have sufficient resources throughout the fiscal year to perform a monthly close of its accounting records. Effect: There were some accounts that were not reconciled which resulted in audit adjustments to correct the account balances. Recommendation:We recommend the Center obtain the additional resources needed to perform a monthly close of its accounting records. We also recommend the Center process all compensation through its third-party vendor