Finding Text
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.