Finding Text
2022-005 Bank Reconciliations
Material Weakness
CONDITION: The following conditions were noted during our bank reconciliation testing: • Auditors could not determine the timing of the preparation of monthly bank reconciliations
• Bank reconciliations are being performed by hand (outside of their accounting system)
• Bank reconciliations did not agree with their accounting system, and were off by a material amount
• Bank reconciliations did not have preparer and reviewer signatures
CRITERIA: Under Financial Oversight and Controls in the School’s policies and procedures it states that “The Superintendent shall maintain a system of internal controls to identify potential risks, manage potential risks, and deter and monitor fraud and financial impropriety in the District.” CAUSE: A written policy does not exist over the completion of bank reconciliations and a lack of proper monitoring by management. EFFECT: The School’s financial accounting software system reports may be inaccurate.