Finding Text
Finding #2022-002 ? Lack of Financial Close Process (Prior year finding #2021-001) Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. During the year and as of June 30, 2022, cash balances on the general ledger had unreconciled differences compared to the bank balances. Effect: Financial reporting from the District?s general ledger could be materially misstated. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Criteria: Cash and other accounts should be timely reconciled. General ledger cash balances should be reconciled to the monthly or quarterly bank statements. During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Response: The District will work to establish procedures to reconcile accounts monthly. Timely bank reconciliations are being completed in 2022-2023.