Finding Text
LUKACHUKAI COMMUNITY SCHOOL, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 SECTION II ? FINANCIAL STATEMENT FINDINGS 2022-001 Account Reconciliations - Repeated (Prior Year Finding 2021-001 and 2020-001) Condition: Account reconciliations were not performed timely and/or did not agree to the general ledger when performed. Current policies and procedures do not provide for segregation of duties as the Business Manager is to post and reconcile transactions without any review process. Criteria: The School is responsible for maintaining adequate internal controls over its accounting records, account balances, and financial statement disclosures. Accounting records should include a complete, balanced general ledger that records all transactions that is supported by appropriate subsidiary records so that accurate financial statements can be prepared. Procedures should be in place to ensure that balance sheet accounts are independently reviewed and reconciled to the subsidiary records in a timely and effective manner. Cause: There was a lack of established internal controls and processes over the financial reporting and reconciliation process to ensure timely and accurate financial reporting. Effect: Without established and adequate internal controls and reconciliation procedures, the School?s balances lack certainty about the accuracy of the balances. Also, the probability that fraud or material errors will occur and go undetected generally increases. Repeat: Yes ? Years as Repeat Finding: Two Auditor's Recommendation: We recommend management evaluate all aspects of the financial close and reporting process as well as the account reconciliation process and establish adequate internal controls and procedures to ensure timely and accurate financial statements and supporting schedules and to ensure timely compliance requirements are met. View Of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.