Finding Text
2022-002 ? Account Reconciliations Criteria: Financial statement accounts should be reconciled to supporting documentation and the general ledger account balance on a monthly basis. Condition: At June 30, 2022, the grants receivable and related deferred revenue accounts, grant revenue accounts, pledges receivable and accrued expense accounts were not reconciled with the general ledger. Cause: During most of the year ended June 30, 2022, Sadler Health Center Corporation (the Center) was functioning without a full time Chief Financial Officer. This placed more work on the existing staff, but more importantly left a void in the leadership and accounting knowledge needed for proper controls and reconciliation of the account balances for the Center. The Center did contract for a fractional Chief Financial Officer during 2022 to help with basis financial operations, however, they could not full fill all the responsibilities of a full time Chief Financial Officer. Effect: Basic accounting processes were either not completed or not completed timely, which resulted in additional entries needed to adjust the books and records of the Center. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: The Center needs to ensure the grants receivable, deferred revenue, grant revenue, pledges and accrued expense accounts are reconciled with support and the general ledger on a monthly basis. Views of Responsible Officials: Management agrees with the above finding and has taken the following actions: ? Leadership hired a full-time Controller, effective date of April 2023 ? Temporary contracted bookkeeper engaged, effective date March 2023 ? Professional recruiting support engaged for CFO search ? Sr. Staff Accountant position has been posted for hire ? Fully staffed accounting department will consist of the following: o Chief Financial Officer o Controller o Sr. Staff Accountant o Staff Accountant ? Interim CFO and Controller are actively engaged in establishing internal controls and procedures for reconciliation of accounts on a monthly basis; including establishing a daily, weekly, monthly, quarterly and annually tasks list with Assigned personnel and due dates.