Finding Text
Finding 2022-002: Year-End Closing Information on the Federal Programs: 93.070 Criteria: In accordance with CFR 200.302 the financial management system of each non-Federal entity must provide for effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. Condition: At the commencement of the audit, we noted certain schedules included variances from the trial balance. We posted three entries resulting in a net decrease to net income of $38,647. Cause: Certain accounts and schedules had not been fully reconciled prior to the commencement of the audit. Effect or Potential Effect: Effective year-end closing procedures are important to avoid potential loss of Federal funds. Questioned Costs: Undetermined Context: APC's closing process did not identify some changes necessary. Identification as a Repeat Finding: N/A Recommendation: We recommend that APC pay additional attention to the closing process to ensure that all accounts are reconciled in advance of the audit. Review and approval procedures should be in place to ensure that errors are detected. We recommend that approval of key reconciliations be documented.