Finding Text
2022-001 Financial Close for Assets, Liabilities and Net Assets Condition: We noted that the financial close accounting process for certain assets, liabilities and net assets were not properly reported. Criteria: In accordance with accounting principles generally accepted in the United States of America and generally accepted Government Auditing Standards, organizations are to properly record their financial close to ensure that all accounts are properly reconciled and recorded. Cause: Management has not performed the financial close procedures to ensure these accounts are properly reconciled. Effect: Without management ensuring a proper financial close procedure for these accounts, the financial statements contain material errors. Recommendation: We recommend that the Organization require that a financial close policy be implemented which requires a review of all accounts to ensure they are properly reconciled on a monthly basis.