Finding 520096 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2025-01-24

Audit: 339671

Organization: Rain Home Attendant Services, Inc. (NY)

Auditor: Pkf O'Connor Davies LLP

AI Summary

Core Issue: The general ledger for key accounts was not analyzed or reconciled regularly in 2022.
Impacted Requirements: Accounts receivable were not available during the audit, leading to inaccuracies and necessary adjustments.
Recommended Follow-Up: Ensure monthly analysis and reconciliation of significant accounts by finance staff, and conduct a year-end trial balance review.

Finding Text

Criteria or Specific Requirment General ledger activity for significant accounts should be routinely analyzed and reconciled. Condition/Context The general ledger activity for significant statement of financial position accounts were not routinely analyzed and reconciled during 2022. Accounts receivable were not readily available upon request during our audit and required adjustments to be made once received. Cause During 2022, the finance department had limited accounting staff which made the analysis of significant general ledger accounts on a monthly basis difficult to perform. Effect Account receivables balances in the general ledger were not accurately stated and required adjustment. Recommendation We recommend that all significant general ledger accounts be analyzed and reconciled each month by finance department staff and that at year end an analysis of the trial balance be done to verify the accuracy of final numbers. Reporting Views of Responsible Officials See Corrective Action Plan.

Corrective Action Plan

Finding No: 2022-001 General Ledger Analysis Response: Agree Planned Corrective Action: Management recognizes, understands and acknowledges the importance of routinely reconciling activities for significant accounts; receivables transactions cash and investment activity timely. To ensure that all these accounts are analyzed and reconciled on a timely basis with the bank statements activities, and all transactions recorded to agree general ledger balances, the Corporate Controller will orient the staff accounts and billing and receivable manager on strict adherence to the existing policy and procedure, which requires reconciliation at least 30 days after the closing of the month. There will be a draft detailed policy for these reconciliation timelines for submission for verification and approval. The policy will require that all adjusting entries be promptly recorded via a journal entry and that no adjustments to significant accounts are carried forward without proper disposition and resolution. The policy will further require that the Controller review each reconciliation for compliance no later than the last day of each month for the previous month. Anticipated Completion Date: Last 6 months of FYE 06.30.2025.

Other Findings in this Audit

520097 2022-002

Significant Deficiency
520098 2022-003

Significant Deficiency
1096538 2022-001

Significant Deficiency
1096539 2022-002

Significant Deficiency
1096540 2022-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.498	Provider Relief Fund	$1.35M