Finding Text
Accounting records provide management with valuable insights into an organization’s profitability, liquidity, and overall financial health. As a result, it is imperative that organizations maintain accurate and complete accounting records, that are adequately supported with documentation. The Center has written accounting policies and procedures that outline the steps for processing, analyzing, and reconciling its account balances. However, during the audit, we identified some account balances that were not completely analyzed and reconciled and journal entries that were not supported with adequate documentation. Audit adjustments were made to correct the account balances. The Center does not have sufficient human resources in its accounting department to perform the monthly analysis and reconciliation of its account balances. The Center has one individual primarily performing its accounting functions. The additional resources will enable the Center to reconcile its accounts timelier and produce more accurate financial reports. Recommendation: We recommend the Center provide additional human resources to its accounting department. We also recommend the Center analyze and reconcile its accounts monthly and retain all documentation supporting the journal entries in its accounting system