Finding Text
2023-001: Internal Controls Over Financial Reporting – Bank Reconciliations Criteria: Controls should be in place and performed in a timely basis in order to to be completed within 30 days of the month end. prevent, or detect and correct misstatements. Condition: An important element in accounting are bank reconciliations, which were not being performed in a scheduled timely manner. Cause: Disbursements and receipts of City funds record these transactions into the general ledger, which generates financial statements. The bank reconciliations verify the items that are disbursed and receipted are correctly recorded in the financial statements and are properly authorized. Effect: There is no effect on the financial statements. Recommendation: We recommend the City implement controls so that the bank reconciliations are performed in a timely manner. Management’s Response: Management intends to adopt the recommendation to require the bank reconciliation to be completed within 30 days of the month end.