Material Weakness
Finding: Financial Statement accounts should be reconciled on a monthly basis
to ensure proper financial reports.
Questioned Costs None
Status Sustained
Corrective Action At the end of each fiscal quarter, all Balance Sheet accounts, and
significant revenue and expense accounts, are reconciled to the
appropriate supporting documentation by the Chief Financial
Officer or designated individual. In addition, the CFO, or designated
individual, prepares the necessary adjusting journal entries for the
reconciliations. The reconciliations and adjusting journal entries
are then submitted to the CEO for review and approval. In cases
when the CFO designates other finance department staff to
reconcile significant revenue and expense accounts, the CFO will
review and approve the reconciliation and adjusting entries. Once
approved and signed off/approved the journal entries are entered
into the accounting system.
At year-end, the same process is completed as part of the fiscal
year closing process to ensure all accounts are accurate before the
arrival of the auditors. Once, the year-end adjusting entries have
been approved and posted to the accounting system, the year-end
financial statements are prepared by the CFO. These financial
statements, along with the footnote disclosures, are then reviewed
and approved by the Operations Committee of the Board of
Directors to ensure they are prepared in accordance with generally
accepted accounting principles. The related supporting
documentation is kept on file for future auditing purposes.