Finding Text
Program: Elementary and Secondary Education (84.425) Criteria: The Organization should ensure all non-routine journal entries are reviewed and approved. Condition: There is no formal review and approval of journal entries posted to the general ledger. There are several recurring month and year end closing entries subject to certain compensating controls. Compensating controls in place are review and approval of monthly investment statements, approval of payroll registers, and government revenue reconciliation. Context: Journal entries outside of the routine monthly reconciliation processes are not reviewed and approved. Questioned Costs: None identified. Effect: Erroneous journal entries may be posted to the Organization?s accounting records resulting in a misstatement of the account balances. Cause: Lack of formal review and approval process. Recommendation: We recommend a formal journal entry review and approval process be developed and implemented. Views of Responsible Officials: Management agreed with finding.