Finding Text
2022-001 Bank Statement Reconciliations Criteria: Pursuant to Syracuse Model Neighborhood Facility, Inc.'s (Facility) Accounting Policy and Procedural Manual, bank reconciliations should be prepared by the finance department, and reviewed and approved by the Executive Director or a member of the Finance Committee. Condition: We examined all bank account reconciliations for the months ended March, June, September and December of 2022 and noted that the majority of the bank reconciliations were not prepared in a timely manner. Since cash activity for all federal programs go through the Facility's main checking account, untimely preparation and review of bank reconciliations is not only a financial statement finding but also a federal award finding for the Community Development Block Grant (Assistance Listing Number 14.218) and the Prevention and Treatment of Substance Abuse (Assistance Listing Number 93.959). All significant bank accounts at December 31, 2022 were reconciled and reviewed by the end of March 2023. This finding continues to be a material weakness for the Facility. Cause: There have been staffing changes within the Facility's finance department during 2022 which resulted in delays with the preparation of the bank reconciliations and consequently the review of these reconciliations. Effect: Bank reconciliations are an important part of the Facility's internal control procedures to detect any unusual or unreconciled differences within the Facility's cash balances. Recommendation: In order for bank reconciliations to be an effective internal control procedure, they should be performed and reviewed on a timely basis, within thirty days of each month end in order to properly detect and correct errors and potentially identify fraudulent misstatements. Views of Responsible Official and Planned Corrective Action: The Chief Executive Officer and Chief Financial Officer will ensure this control procedure is rectified to ensure that bank reconciliations are performed and reviewed in a timely manner.