Finding Text
Criteria/Condition: CAP?s consolidated financial statements include CAP National Headquarters (NHQ), CAP Wings and Regions (Wings) as well as the CAP Foundation. These components are consolidated into the financial statements through various manually updated excel workbooks and consolidating entries. Wing Financial Analysts (WFA) are assigned from eight to twelve Wings. The Wing consolidation is performed by each WFA manually combining their assigned Wings? QuickBooks accounting history for the year in an excel workbook. These WFA workbooks are then manually combined into the Wing consolidated workbook. The WFA workbooks were not accurately updated. Cause/Effect: The Wing consolidation is a manual process which, by nature is prone to error. As a result, several discrepancies related to fixed assets, accounts payable, other liabilities, contribution revenue and net assets released from restrictions were noted in the WFA workbooks. These items were subsequently corrected by management. Recommendation: We recommend CAP evaluate current policies and procedures to ensure that the WFA workbooks and Wing consolidation are accurate and free from discrepancy. This process should include a review of the WFA workbooks by someone other than the preparer as well as an overall review of the Wing consolidated workbook. Once items are set for review, they should be locked down to prevent any unapproved changes. To facilitate this review process, CAP should consider creating a standardized review checklist. This checklist would not only assist in the review, but also document the reviewer as well as the date of the review.