Finding Text
Material Weakness: As discussed at Finding 2024-001 Monthly bank reconciliations were not performed for any bank accounts for the period January through August 2024. As a result, discrepancies between the bank statements and the organization’s accounting records were neither identified nor investigated in a timely manner. The absence of these controls increases the risk of errors or omissions in financial reporting, may result in noncompliance with accounting standards, and could lead to material misstatements or undetected errors in the financial statements and in charges to federal awards. We recommend that management implement a formal policy requiring monthly bank reconciliations for all bank accounts. Staff responsible for this process should receive appropriate training and completed reconciliations should be reviewed and approved by a supervisor and the review should be documented. This will help ensure the accuracy of cash records and strengthen the organization’s internal control environment.