Finding 496448 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-09-11
Audit: 319370
Organization: Madison-Carver Academy (MI)

AI Summary

  • Core Issue: The Academy's accounting data needed major adjustments to align with the general ledger during the audit.
  • Impacted Requirements: Internal controls failed to ensure accurate calculations and reconciliations as per generally accepted accounting principles.
  • Recommended Follow-Up: Implement monthly and yearly closing procedures for better account reconciliation and alignment with the general ledger.

Finding Text

Criteria The Academy’s internal control structure should ensure that the accounting data is appropriately calculated, reconciled, and reported in accordance with generally accepted accounting principles. Condition The Academy’s accounts required significant adjustments to the general ledger to properly reflect the appropriate balance after the books and records were presented for audit. Cause/Effect While the accounts were reconciled throughout the year, the reconciliations completed had certain instances where the year-end reconciliation process didn’t match to the general ledger. Recommendation The Academy should institute monthly and yearly closing procedures to ensure that all accounts are reconciled and match the general ledger.

Corrective Action Plan

Investment in configuration of new software will allow for more consistent internal controls and proper reporting to aid in monthly reconciliation and close process. Department will create and implement a monthly close checklist that will be adhered to and followed up on by the Accounting Manager. This list will include revenue and grant reconciliations as well.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 496449 2023-002
    Material Weakness Repeat
  • 496450 2023-003
    Material Weakness Repeat
  • 1072890 2023-001
    Material Weakness Repeat
  • 1072891 2023-002
    Material Weakness Repeat
  • 1072892 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.07M
84.010 Title I Grants to Local Educational Agencies $393,529
84.027 Special Education_grants to States $128,576
10.553 School Breakfast Program $76,557
84.367 Improving Teacher Quality State Grants $17,810
10.565 Commodity Supplemental Food Program $17,527
10.555 National School Lunch Program $4,600
84.424 Student Support and Academic Enrichment Program $2,251
10.649 Pandemic Ebt Administrative Costs $628