Finding Text
Criteria To provide for better management of the Agency?s financial position, the Agency should maintain full accrual financial statements throughout the fiscal year, rather than producing full accrual statements only at fiscal year end. Condition The Agency does not prepare its internal financial statements on the full accrual method of accounting, but rather maintains the financial records on the basis of cash receipts and cash disbursements. Cause Agency staff do not possess the training necessary to prepare the Agency?s financial statements in accordance with U.S. GAAP in interim periods. Effect The Agency?s interim financial statements do not include accrual transactions. Recommendation The Agency should investigate opportunities to provide staff additional training in GAAP basis financial reporting.