Finding 7159 (2022-002)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2024-01-03
Audit: 9222
Auditor: Spd CPA Firm

AI Summary

  • Core Issue: Bank accounts were not reconciled at year-end, risking inaccurate cash balance reporting.
  • Impacted Requirements: Good internal controls require timely bank reconciliations to maintain accurate financial records.
  • Recommended Follow-Up: Ensure bank reconciliations are completed in line with the financial reporting period to mitigate risks.

Finding Text

Condition: During the course of the audit, we noted that the bank accounts are not reconciled at year-end to ensure proper cutoff and reporting of cash balances at December 31. Criteria: Good internal controls include the reconciliation of bank accounts by the Organization to ensure cash balances are properly maintained in the ledger and reported. Effect: The lack of adequate bank reconciliations increases the risk that transactions occur and not be properly recorded in the proper accounting period, therefore increasing the risk of material misstatements to the financial statements. Recommendations: The Organization should ensure bank reconciliations are performed in alignment with the financial reporting period

Corrective Action Plan

The Organization is working with their financial institution to see if statement closing dates can better align with the reporting period. The Organization will perform the reconciliation if no changes can be made with the bank

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 7158 2022-001
    Significant Deficiency
  • 7160 2022-003
    Significant Deficiency Repeat
  • 583600 2022-001
    Significant Deficiency
  • 583601 2022-002
    Significant Deficiency Repeat
  • 583602 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $874,131
10.559 Summer Food Service Program for Children $181,621