Finding Text
During the current year audit testing procedures, certain revenue recognition and donation reconciliation issues were noted. These issues were not initially identified by the Organization’s accounting process and procedures, resulting in adjustments to accounts receivable and revenue.
We recommend that management follow the internal controls established in its Accounting Policies and Procedures handbook, and consider implementing additional control procedures, including, but not limited to, the following annual and monthly review procedures.
Annual Procedures:
• We recommend that management implement additional cutoff review procedures at the end of each reporting period to ensure revenue, billings, and expenses are recorded in the proper period.
Monthly Procedures:
• We recommend that management implement additional cutoff review procedures at the end of each month to ensure revenue, billings, and expenses are recorded in the proper period.