Finding Text
Finding #2023-001 – Material Adjustments (Prior year finding #2022-001)
Condition: Material adjusting journal entries not prepared by the District before the audit were required to record and reconcile account balances.
Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District’s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved.
Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions.
Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness.
Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner.
Response: The District will work to establish policies and procedures to reduce the materiality of adjusting journal entries proposed by the auditor.