Finding 608585 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-06-23

AI Summary

  • Core Issue: Bank reconciliations are not being done monthly, leading to potential errors.
  • Impacted Requirements: Timely preparation of bank reconciliations is essential to avoid omissions and undetected errors.
  • Recommended Follow-Up: Ensure all bank accounts are reconciled by the 10th of each month as per the new management protocol.

Finding Text

2022-001 BANK RECONCILIATIONS Criteria: Bank reconciliations should be prepared in a timely manner (i.e. monthly). Condition: During our audit testing, we noted that some bank reconciliations were not prepared monthly, but rather they were prepared in batches months after the statement date. Cause: Bank statements are not being reviewed and reconciled monthly. Effect: Transactions may be omitted from the general ledger system or bank errors may go undetected if accounts are not reconciled monthly. Questioned Costs: N/A Recommendation: We recommend that management ensure that all bank accounts are reconciled monthly to ensure proper recording of transactions. Management?s Views and Corrective Action Plan: Management has implemented the protocol with staff members to reconcile the bank statements by the 10th of each month.

Categories

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Other Findings in this Audit

  • 32143 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.98M
10.427 Rural Rental Assistance Payments $326,684