Finding Text
2020-01: Year End Closing Schedule ? Timely Reconciliations: Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year-end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year-end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year-end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management?s or the auditor?s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2022, the Organization experienced turn over in the accounting department and experienced staffing shortages related to the COVID-19 pandemic and implementation of the streamlined closing process was delayed. Management Response: House of Hope, Inc has been significantly impacted by a staffing shortage due to the pandemic. As a result, some of our systems and processes have not been as timely as would occur with full staffing of our finance department. A monthly closing schedule with staff assignments has been implemented.