Finding Text
Condition: During our testing of the general ledger, we noted certain payroll liability accounts had incorrect balances.
Criteria: Internal controls should be in place that provide reasonable assurance payroll liability accounts are properly recorded and adjusted as needed.
Cause: The District does not reconcile the payroll withholding accounts in a timely manner.
Effect: District financial statements could be misstated according to accounting principles generally accepted in the United States of America.
Recommendation: Procedures should be implemented requiring monthly reviews of the payroll liability withholding accounts and adjustments made as needed.
Views of Responsible Officials and Planned Corrective Actions: School District Borough of Brentwood agrees with the finding and the recommended procedures have been implemented.