Finding Text
Condition: Payment receipt logs were not prepared, payment receipts were posted to incorrect general ledger accounts, and no evidence was provided for review and approval of accounting for payment receipts. Criteria: Internal controls should be in place that provide reasonable assurance that payment receipts are documented as received, are properly recorded in the general ledger, and that the review and approval of accounting over payment receipts is properly documented while maintaining sufficient segregation of duties. Effect: Lack of controls over payment receipts resulted in misstatements of accounts receivable and revenue throughout the year. Recommendation: Procedures should be implemented to ensure incoming payment receipts are logged, properly recorded to the appropriate accounts, and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and recommended procedures have been implemented.