Finding Text
Criteria
The Academy’s internal control structure should ensure that the accounting data is appropriately calculated, reconciled, and reported in accordance with generally accepted accounting principles.
Condition
The Academy’s accounts required significant adjustments to the general ledger to properly reflect the appropriate balance after the books and records were presented for audit.
Context
We noted several accounts that required reconciling after the general ledger was closed.
Cause and Effect
The Academy did not perform proper reconciliation of accounts and the Academy did not have proper controls in place.
Recommendation
The Academy should institute monthly and yearly closing procedures to reconcile all accounts and match the general ledger.
Management’s Response
The Accounting Manager will adhere to the established monthly checklist and physically check off items as they are completed, including the date of completion. Management will review the monthly close procedural checklist to ensure established processes have been followed and completed and sign off on each month after completion/close is verified.