Finding Text
Cash Account Reconciliations
Condition: Although the City has established procedures and controls related to bank reconciliations, we found that these procedures are not being followed. During fieldwork we noted bank reconciliations were either not being prepared on a monthly basis or contained material differences.
Criteria A sound system of internal control requires that significant and sensitive accounts are reconciled monthly and monitored to ensure compliance.
Cause: The City has not performed ongoing or separate evaluations to ascertain whether internal control activities are present and functioning properly.
Effect: Material misstatements of the cash accounts and the misappropriation of cash may occur and not be prevented or detected or corrected in a timely basis.
Recommendation: The City should evaluate their internal controls over cash account reconciliation to ensure they are operating effectively and that monitoring of this control is being accomplished on a consistent basis.