Finding Text
Condition: The Organization lacks controls over the year-end financial reporting process. Several adjustments were discovered during the course of the audit. Effect: The Organization’s financial records and SEFA may be misstated before the annual audit is completed. Cause: The inaccuracies with the account balances were primarily a result of personnel turnover. Criteria: A system of internal control should be in place that provides reasonable assurance that year-end financial records, including the schedule of expenditures (SEFA), are complete and accurate.
Recommendation: The Organization should take steps to ensure proper financial reporting. Policies and procedures should be reviewed to determine whether any improvements need to be made in the year-end processes Response: In the future, the Organization will take additional steps to ensure all account balances are accurate.