Finding Text
Condition:
For the year ended June 30, 2023, the University did not complete a full close and review of the trial balance accounts by the start of the audit and multiple trial balances were generated. Net assets were not properly rolled at year end and the balance did not reconcile to the trial balance. Trial balance adjustments were booked after the close process was completed.
Criteria:
The University is responsible for maintaining an adequate system of internal controls over financial reporting in order to initiate, authorize, record and process and report financial data reliably in accordance with generally accepted accounting principles in the United States of America.
Cause:
The University did not have the June 30, 2023 financial records closed timely.
Effect:
The University’s 2023 audit was delayed, and journal entries were required.
Questioned Costs:
None
Recommendation:
We recommend management of the University implement close procedures at year end to complete a timely close with review prior to the start of the audit.
Auditee’s Response and Corrective Action Plan:
Management agrees with the finding. See the corrective action plan.