Finding Text
Monthly Bank Reconciliation Condition: During audit fieldwork, we found that the bank reconciliations were not being performed on a monthly basis. Criteria: A good system of internal controls would provide for a monthly review of all bank reconciliations, including the reconciliations performed by the Township Treasurer. Cause: As the June 30, 2022 Township Treasurer Pooled Investment reconciliation was unable to be provided, L&A qualified the opinion of the financial statements as the balance held by the Treasurer on-behalf of the Joint Agreement was unknown. Effect: The Joint Agreement?s main cash and investment accounts were unable to be confirmed to be accurate during audit fieldwork. Recommendation: We recommend as a means of better control, that bank reconciliation?s be performed each month and any variances be investigated and adjusted immediately. As these are performed by the Township Treasurer, we recommend the Joint Agreement require the monthly bank reconciliations and supporting documents to ensure the correct balances as allocated to Joint Agreement.