Finding Text
Year-end Bank Reconciliations
Material Weakness
Condition: At the time of our audit test work, the year end bank reconciliations, prepared by the Director of Finance, included several large reconciling items and were not reviewed independent of preparation.
Criteria: Adequate internal control functions over the financial reporting process.
Cause: Oversight by management.
Effect: Opportunity for misappropriation of assets, and possibility that a misstatement of the Organization's financial statements will not be prevented, or detected and corrected, on a timely basis.
Recommendation: We recommend all bank reconciliations be reviewed and approved as part of month-end procedures to improve internal controls of accuracy and transparency of financial reporting.
View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.