Finding Text
Period Closing Processes and Procedures. Information on the federal program: Assistance Listing Number 17.285 - Registered Apprenticeship, U.S. Department of Labor, Office of Apprenticeship Program. Award numbers: 1605CE-22-C-0005, K8088, and K8089 and Assistance Listing Number 21.027 - Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of Treasury. Award numbers: CLFR-116A-3, and Kent Manufacturing Academy-SLFRF. Compliance Requirements: Reporting. Type of finding: Significant Deficiency. Condition: Management did not perform period closing processes and procedures on all general ledger accounts. Effect or potential effect: Multiple revisions of the year-end trial balance were provided during the audit process. Cause: Reconciliations on certain asset, liability, and net asset accounts were not performed and reviewed as part of the year-end closing process. Criteria: The financial management section under Uniform Guidance 2 CFR 200 Subparts D requires recipients and subrecipients of Federal awards to maintain accounting books and records sufficient to permit the preparation of reports required by the terms and conditions of the Federal award; and tracking of expenditures to establish that funds have been used in accordance with Federal statutes, regulation, and the terms and conditions of the Federal award. Questioned costs: None. Recommendations: We recommend management perform period closing processes and procedures on all asset, liability, and net asset accounts. We recommend management review and revise current accounting policies and procedures to ensure that all asset, liability, and net asset accounts are reconciled and reviewed monthly. Views of the responsible officials and planned corrective actions: AJAC implemented monthly account reconciliations on all asset, liability, and net asset accounts and review by AJAC Directors and Supervisors, this will ensure that the accounting books and records accurately reflect the activity of AJAC as of the end of each period.