Finding Text
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.