Finding Text
2022-002 - Adequate Supervision and Oversight of Year-End Financial RecordsCriteria: Effectively designed and executed policies and procedures of financial processes surrounding annualyear-end close should exist to ensure adequate supervision and oversight are present to properly record andreport accurate final financial information.Condition: There was a lack of oversight over financial year-end adjustments and reporting.Cause: Adequate supervision and timely oversight of year-end financial records, including reconciliations, accountbalances and overall year-end reporting was not adequate. Further, there is significant reliance placed on oneposition within the finance department, resulting in an inequitable distribution of responsibilities.Effect: The lack of supervision and oversight resulted in material audit adjustments to properly present year-endfinancial records.Recommendation: We recommend that management identify and evaluate responsibilities among financedepartment personnel to ensure adequate training to supervise and oversee reconciliations, ensure properposting of journal entries and oversight of the overall financial reporting process. This position should not be thesame position posting journal entries, recording daily activities and reconciling those accounts.Views of Responsible Official and Planned Corrective Actions: Executive management will update and implementprocedures to ensure clear supervision and oversight duties are executed and that these duties are adequatelysegregated.