Finding Text
Finding Type: Material Weakness (Repeat Finding)Criteria
The Academy should have appropriate overall monitoring of the general ledger 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 that resulted in many
auditor-proposed journal entries.
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 we 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 be
responsible for the entire general ledger and financial statements to perform
monitoring, analytical analysis, and adjustment as needed.