Finding Text
Finding 2022-001 Year-End Close Process/Account Reconciliations Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: The initial financial information provided for the audit was not accurate, resulting in delays in the audit process. In addition, we noted that certain schedules/reconciliations were not properly prepared in advance of the audit. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If each account is not reconciled regularly, it increases the risk of loss of Federal funds. Questioned Costs: None Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.