Finding Text
Oversight of Financial Reporting Process: Significant Deficiency. Criteria – Bank accounts should be reconciled monthly to general ledger. Condition – January through December 2022 bank reconciliation for one account was not reconciled until May 2024 during audit work. Context – Management is responsible for reviewing accounting data, and preparation of financial statements. Cause – During the year, Isuroon experienced turnover of key staff within the accounting unit. Effect – Journal entries were not recorded timely. Therefore, Isuroon internal financial statements did not accurately reflect its financial position. Recommendation – We recommend that all bank accounts reconciled monthly to the general ledger and all suspicious reconciling items be promptly investigated and adjusted with adequate documentation. View of Responsible Officials and Corrective Action Plan – Isuroon acknowledges the impact of staff turnover and the critical need for strong leadership within the finance team. As outlined in our response to the first finding, we are actively recruiting an experienced Finance Director to provide leadership and expertise in internal control for nonprofit accounting. Additionally, comprehensive training on internal control, financial reporting and other relevant financial procedures will be provided to existing staff members. Furthermore, the engagement of a certified accounting firm to conduct monthly reviews of our financial records will ensure compliance with internal control procedures, providing feedback and guidance as needed. These measures are aimed at reinforcing internal controls, facilitating timely bank reconciliations, and demonstrating our unwavering commitment to transparency and accountability in financial management.