Finding 504351 (2023-001)

Criteria: Fixed assets must be reconciled to detailed depreciation reports. Condition: During our audit, we noted that fixed assets were not being reconciled to detailed depreciation reports throughout the year. This resulted in material entries to correct for fixed asset additions. Context: The reconciliation issues can be attributed to turnover in staffing as the Project has experienced significant turnover in its finance department. Effect: The Project is not accurately reporting financial information throughout the year. Cause: Turnover in the finance department resulted in a delay for reconciling certain general ledger accounts. Recommendation: We recommend that the Project review and strengthen current procedures regarding the reconciliation process to ensure all accounts are reconciled timely and accurately. Views of management and planned corrective action: The CFO and project manager will continue to oversee the fixed assets reconciliation process. A formal reconciliation procedure will be implemented and monitored. The Project will review, reevaluate, and readjust as needed.