Finding Text
2022-001 – Untimely Reconciliation of Account Balances
Criteria: The Organization’s account balances should be reconciled in a timely manner.
Condition: Reconciliations were not properly performed throughout the year.
Cause: Inconsistent and incomplete implementation of controls due to staff vacancies and change in accounting software during the fiscal year.
Effect or potential effect: Errors could go unnoticed, causing overall misrepresentation of financial information. There were numerous material adjustments made during the audit, including adjustments to beginning net assets (prior period adjustments).
Recommendation: There should be accounting policies and procedures in place that document the initial, timely reconciliations of general ledger accounts each month. A review should then be performed by a qualified individual or committee having experience with such oversight.
Management’s response: See Management’s Corrective Action Plan.