Finding 42248 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-08-16

AI Summary

  • Issue: Year-end bank account balances were not reconciled, leading to inaccurate cash reporting.
  • Requirements: Monthly bank reconciliations and accurate general ledger entries are necessary for financial accuracy.
  • Follow-up: Ensure timely completion of monthly reconciliations and monitor adjustments to the general ledger.

Finding Text

Condition: The facility has bank account balances that were not reconciled at year-end. Criteria: The facility should properly record bank activity in the general ledger. Cause: Management did not effectively review monthly and year-end bank account reconciliations to ensure that financial information was accurate. Effect: The facility?s cash balance was misstated at year-end. Recommendation: Bank account reconciliations should be done monthly and general ledger accounts should be adjusted accordingly. Views of Responsible Officials: Administration recognizes the importance of monthly reconciliations. Administration monitored cash daily, but formal reconciliations were not completed timely due to system implementations. While implementing the new payroll and accounting systems, running dual systems was time prohibitive. Administration has since completed implementations and is completing timely bank reconciliations.

Corrective Action Plan

2022-001: The facility has bank account balances that were not reconciled at year-end. Recommendation: Management should ensure that bank account reconciliations are performed at the end of each fiscal year and the general ledger accounts are adjusted accordingly. Action Taken: We concur with the recommendation, and measures have been taken to correct the matter.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 618690 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $822,731