Finding 32143 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-06-23

AI Summary

  • Core Issue: Bank reconciliations are not being done monthly, leading to potential errors.
  • Impacted Requirements: Timely preparation of bank reconciliations is essential to avoid omissions and undetected errors.
  • Recommended Follow-Up: Ensure all bank accounts are reconciled by the 10th of each month as per the new management protocol.

Finding Text

2022-001 BANK RECONCILIATIONS Criteria: Bank reconciliations should be prepared in a timely manner (i.e. monthly). Condition: During our audit testing, we noted that some bank reconciliations were not prepared monthly, but rather they were prepared in batches months after the statement date. Cause: Bank statements are not being reviewed and reconciled monthly. Effect: Transactions may be omitted from the general ledger system or bank errors may go undetected if accounts are not reconciled monthly. Questioned Costs: N/A Recommendation: We recommend that management ensure that all bank accounts are reconciled monthly to ensure proper recording of transactions. Management?s Views and Corrective Action Plan: Management has implemented the protocol with staff members to reconcile the bank statements by the 10th of each month.

Corrective Action Plan

CORRECTIVE ACTION PLAN April 25, 2023 Federal Audit Clearinghouse 1201 East 10th Street Jefferson, Indiana 47132 Madison Interfaith Residential Community, Inc. d/b/a Concord Meadows (the Project) respectfully submits the following Corrective Action Plan for the year ended June 30, 2022. Hoyt, Filippetti & Malaghan, LLC 1041 Poquonnock Road Groton, Connecticut 06340 Audit Period: Year ended June 30, 2022 The findings from the June 30, 2022 Schedule of Federal Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 2022-001 BANK RECONCILIATIONS Criteria: Bank reconciliations should be prepared in a timely manner (i.e. monthly). Condition: During our audit testing, we noted that some bank reconciliations were not prepared monthly, but rather they were prepared in batches months after the statement date. Cause: Bank statements are not being reviewed and reconciled monthly. Effect: Transactions may be omitted from the general ledger system or bank errors may go undetected if accounts are not reconciled monthly. Questioned Costs: N/A Recommendation: We recommend that management ensure that all bank accounts are reconciled monthly to ensure proper recording of transactions. Management?s Views and Corrective Action Plan: Management has implemented the protocol with staff members to reconcile the bank statements by the 10th of each month. If you have any questions regarding this plan, please contact Matthew Scibek at 860-398-5425, or matt@westfordmgt.com.

Categories

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Other Findings in this Audit

  • 608585 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.98M
10.427 Rural Rental Assistance Payments $326,684