Finding Text
Criteria: Monthly bank reconciliations are a key financial control for the Organization. Shortly after month end, the Organization should prepare and review a reconciliation of the cash on hand in the bank to the cash recorded in the accounting records. Bank reconciliations are vital for ensuring that the accounting records are complete and accurate, and are an important tool in identifying and preventing unauthorized use of Organization funds.
Condition: Bank reconciliations for the year ended December 31, 2022 were not prepared in a timely manner. Bank reconciliations for the year ended December 31, 2022 were not available for audit inspection until November 20, 2024.
Effect: The delay in preparing bank reconciliations creates an enhanced risk that material errors could exist in the accounting records and not be detected in a timely manner.
Cause: The Organization has limited staffing resources.
Recommendation: We recommend the Organization take steps to promptly complete all open bank reconciliations. Additionally, we recommend the Organization explore additional financial staffing to ensure the operational needs of the Organization are being met.