Finding 401314 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-06-20
Audit: 309382
Organization: Uintah City (UT)

AI Summary

  • Core Issue: Bank reconciliations are not being done on time, which is crucial for accurate financial reporting.
  • Impacted Requirements: Controls must ensure reconciliations are completed within 30 days after month-end to prevent errors.
  • Recommended Follow-Up: Implement timely reconciliation controls; management plans to complete this within the required timeframe.

Finding Text

2023-001: Internal Controls Over Financial Reporting – Bank Reconciliations Criteria: Controls should be in place and performed in a timely basis in order to to be completed within 30 days of the month end. prevent, or detect and correct misstatements. Condition: An important element in accounting are bank reconciliations, which were not being performed in a scheduled timely manner. Cause: Disbursements and receipts of City funds record these transactions into the general ledger, which generates financial statements. The bank reconciliations verify the items that are disbursed and receipted are correctly recorded in the financial statements and are properly authorized. Effect: There is no effect on the financial statements. Recommendation: We recommend the City implement controls so that the bank reconciliations are performed in a timely manner. Management’s Response: Management intends to adopt the recommendation to require the bank reconciliation to be completed within 30 days of the month end.

Corrective Action Plan

Uintah City has implemented the policy of completing the bank reconciliation within 30 days of month end. The City has also redifined roles of staff to make sure the reconciliation is done timely.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 977756 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.75M