Finding Text
2020-005 Timely Bank Reconciliations
Material Weakness
This is a repeat finding. The prior-year’s auditing finding number is 2019-006.
Condition: Management is not performing monthly bank reconciliations.
Criteria: Part 9. Cash Management Policy of the Housing Authority’s financial Policies
states that “On a monthly basis, the Finance Director shall provide a report that shows
the cash position from all sources that are accounted for in the cash accounts and
investment accounts, along with bank and investment statements.”
Cause: A lot of change-over in the Finance Department personnel.
Effect: The Housing Authority’s Financial accounting software system reports may be
inaccurate.
Recommendation: Implement currently adopted policies over bank reconciliations.