Criteria
Management is responsible for timely and accurate financial reporting.
Condition Identified:
Various reconciliations, adjustments, and year-end close procedures were not completed in a timely and accurate manner, resulting in a delay in the completion of the annual audit and untimely filing of the required Single Audit Data Collection Form.
Corrective Action Plan
• Implementation of a Year-End Close Calendar: Develop and adopt a comprehensive year-end close calendar with specific deadlines and responsibilities for each required task, including reconciliations, adjustments, and audit preparation. This calendar will be communicated to all relevant personnel at least 60 days before fiscal year-end.
• Monthly Reconciliation Schedule: Enforce a standardized monthly reconciliation process for all key accounts (e.g., cash, receivables, payables, grants), to ensure that year-end tasks do not accumulate and can be completed efficiently and accurately.
• Staff Training and Cross-Training: Provide targeted training for accounting and finance staff on proper reconciliation techniques, closing procedures, and audit requirements. Cross-training will also be provided to ensure continuity and reduce reliance on single individuals.
• Audit Preparation Checklist: Create and utilize an internal audit prep checklist that is reviewed quarterly and finalized before year-end. This will ensure all necessary reports, schedules, and documentation are prepared well in advance of the auditor’s arrival.
• Automation and Software Improvements: Evaluate and implement improvements in accounting software or systems to automate reconciliation reports and reduce the risk of manual errors.
• Ongoing Monitoring: The Finance Director will perform monthly reviews of account reconciliations and quarterly mock close-outs to assess timeliness and accuracy. Issues will be flagged early for resolution.
Responsible Person(s):
Chief Executive Officer, Finance Director, & Senior Accountant
Anticipated Completion Date:
All corrective measures will be implemented (insert date) in preparation for the FY 2024 year-end.