Finding Text
Condition:
The organization lacked documentation of processes for reconciling ERA program reports with the
general ledger and trial balance, as well as management’s review and approval of these reconciliations.
Criteria:
2 CFR 200.302(b)(5) requires entities to establish controls for ensuring accurate and complete financial
reporting.
Cause:
The organization did not have processes in place for reconciling financial reports during the audit period.
Effect:
Without reconciliation, there is an increased risk of errors or discrepancies in financial reporting.
Recommendation:
Develop reconciliation procedures for program reports and ensure they are reviewed and approved by
management.
Questioned Costs: None
Management’s Response:
Management acknowledges the issue and will establish and document reconciliation procedures to
ensure reports are consistent with the general ledger and trial balance for all future Federal programs.
This includes periodic review and approval by management.