Finding Text
Condition: The facility has bank account balances that were not reconciled at year-end. Criteria: The facility should properly record bank activity in the general ledger. Cause: Management did not effectively review monthly and year-end bank account reconciliations to ensure that financial information was accurate. Effect: The facility?s cash balance was misstated at year-end. Recommendation: Bank account reconciliations should be done monthly and general ledger accounts should be adjusted accordingly. Views of Responsible Officials: Administration recognizes the importance of monthly reconciliations. Administration monitored cash daily, but formal reconciliations were not completed timely due to system implementations. While implementing the new payroll and accounting systems, running dual systems was time prohibitive. Administration has since completed implementations and is completing timely bank reconciliations.