Finding Text
Criteria
The Academy should monitor the general ledger appropriately to ensure timely and accurate financial statements.
Condition
The Academy lacked appropriate overall monitoring of account balances during the year to compile complete and accurate financial reports, which resulted in many auditor-proposed journal entries.
Context
We noted that the Academy didn’t have a process in place to ensure that financial statements were accurate and complete.
Cause/Effect
The Academy did not identify the resources necessary to ensure general ledger accounts were monitored and analyzed by appropriate individuals, including taking an overview of fund activity to finalize the accounting records. As a result of the lack of appropriate overall monitoring procedures, there were many auditor-proposed journal entries.
Recommendation
The Academy should develop an overall monitoring procedure to ensure that all fund activity is complete, accurate, and logical. This includes assigning an appropriate individual to each general ledger account, and several individuals are responsible for the entire general ledger and financial statements to perform monitoring, analytical analysis, and adjustment as needed.