Finding Text
Finding Type: Material Weakness (Repeat Finding)
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 account balances 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 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.