Finding Text
Financial Statement Finding- Reconciliation of Key Accounts-Criteria:Internal controls over financial reporting include timely reconciliation of key general ledger accounts and preparation of interim financial statements that are free from material misstatements. Condition: The Organization has limited personnel and resources to prepare timely monthly account reconciliations and other financial information for internal use of management and the Board of Directors. Cause: In 2024 and 2025, due to personnel turnover and need to spend more time managing cash flow and liquidity, the Organization was not reconciling key statement of financial position and revenue/expense accounts on a timely basis. Effect To prepare accurate monthly interim financial statements, timely account reconciliations should be completed monthly. Recommendation Management should constantly strive to stay up to date on monthly reconciliations and consult with external resources when necessary. The Organization may consider adding additional personnel to obtain the internal expertise needed to handle all aspects of timely account reconciliations and interim financial reporting. Views of Responsible Officials and Planned Corrective Actions The Organization’s management is aware of this material weakness and has taken steps to have other personnel assist in the monthly reconciliations and financial statement preparation. Management reviews and approves the monthly interim financial statements.