Finding Text
Finding No. 2022-001 - Account Reconciliations - Material Weakness in Internal Control Over Financial Reporting Condition Certain asset and liability accounts were not reconciled throughout the year and at year end on a timely basis. This matter was reported as finding #2021-001 in the prior year and is repeated again as the issue continued into fiscal year 2022, while the Organization developed and implemented new processes and procedures to correct the issue. Criteria Internal control over financial management requires that all financial accounts be reviewed and reconciled on a timely basis. Cause Turnover in the finance department and mid-year conversion to the new accounting system led to delays in reconciling all accounts in a timely manner throughout and end of the year. Effect Caring People Alliance was unable to timely produce financial statements and account reconciliations necessary for the audit. Questioned Costs None. Identification as a Repeat Finding Yes, this is a repeat finding, see prior year finding #2021-001. Recommendation As part of the Organization?s internal controls over the financial reporting process, we recommend that all general ledger accounts be reconciled timely on a monthly basis. A monthly financial close checklist should be utilized to identify and track all general ledger account reconciliations. This should reduce the occurrence of unreconciled general ledger accounts and activity that may result in a material misstatement of the financial statements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.