Finding 564431 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-11
Audit: 358568
Organization: Yardley Borough (PA)

AI Summary

  • Core Issue: Bank reconciliations lack independent review, increasing the risk of errors in financial reporting.
  • Impacted Requirements: Segregation of duties is not being followed, which is essential for accurate financial oversight.
  • Recommended Follow-Up: Ensure an independent reviewer is assigned to bank reconciliations by January 2025.

Finding Text

SECTION II – FINANCIAL STATEMENT FINDINGS 2024-001 Criteria and Condition: Bank reconciliations are not reviewed by someone independent of the bookkeeping process. Context: Bank statements are reconciled monthly, however, there is no independent review of the reconciliations once complete. Cause: Lack of segregation of duties. Potential Effect: Errors could occur in financial reporting. Recommendation: Someone independent of the bookkeeping function should review bank reconciliations. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of segregation of duties. Borough of Yardley will ensure that bank reconciliations are reviewed going forward. Action Taken: The Borough will have someone independent of the bookkeeping process begin to review completed bank reconciliations. Anticipated Completion: January 2025.

Corrective Action Plan

SECTION II – FINANCIAL STATEMENT FINDINGS 2024-001 Criteria and Condition: Bank reconciliations are not reviewed by someone independent of the bookkeeping process. Context: Bank statements are reconciled monthly, however, there is no independent review of the reconciliations once complete. Cause: Lack of segregation of duties. Potential Effect: Errors could occur in financial reporting. Recommendation: Someone independent of the bookkeeping function should review bank reconciliations. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of segregation of duties. Borough of Yardley will ensure that bank reconciliations are reviewed going forward. Action Taken: The Borough will have someone independent of the bookkeeping process begin to review completed bank reconciliations. Anticipated Completion: January 2025

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 564432 2024-001
    Material Weakness Repeat
  • 564433 2024-001
    Material Weakness Repeat
  • 564434 2024-001
    Material Weakness Repeat
  • 1140873 2024-001
    Material Weakness Repeat
  • 1140874 2024-001
    Material Weakness Repeat
  • 1140875 2024-001
    Material Weakness Repeat
  • 1140876 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $449