Finding Text
2022-001 ? Account reconciliations, audit journal entries, and overall audit readiness Condition Audit adjustments were necessary to be recorded after the start of audit fieldwork as a result of inquiries of management as part of audit procedures performed. Criteria Internal controls and appropriate policies and procedures should be in place so that the financial statements are in accordance with accounting principles generally accepted in the United States of America. Cause Incomplete application of internal controls and policies and procedures. Effect Financial statement amounts could be materially misstated. Recommendation We recommend timely reconciliation and review of account balances/transactions, including performing such reconciliations for each funding source, in order to verify accounting records are complete, accurate, and in accordance with accounting principles generally accepted in the United States of America. Views of Responsible Officials and Planned Corrective Actions A new accounting system implemented in the prior year significantly changed processes and reporting for PSHS grant reporting. While we have made good progress over the past year, the timeliness of reconciliations is not yet at an acceptable level. We recently hired additional staff to focus on these reconciliations in order to ensure timely, monthly reconciliations. In addition, we recently replaced an open position for a finance lead with expertise in our financial software. With the additional internal staffing resources, combined with consulting with our software vendor, we anticipate much improved reporting and timeliness for PSHS.