Finding Text
Internal Control Policies and Procedures. Condition and Context: AJAC did not have appropriate internal control policies and procedures to ensure accurate financial reporting, including in the areas of: 1) records management, 2) personnel policies, 3) financial reporting, 4) cash management, 5) cost allocation, and 6) formal audit and audit resolution systems. Effect or potential effect: Inaccuracies and delays in reporting of accounting information. Cause: Lack of appropriate cost allocation policies and procedures. Criteria: The Committee of Sponsoring Organizations of the Treadway Commission's (COSO) Framework (Internal Control Framework) states management is responsible for maintaining and following appropriate policies and procedures to ensure accurate financial reporting. Recommendations: We recommend management review AJAC's current policies and procedures to ensure accurate financial reporting. We recommend that management provide regular monitoring and oversight of the internal control policies and procedures of the organization. Responsible official's response: Internal control policies and procedures were updated in order to address this finding. All financial reporting policies and procedures will be reviewed and updated on an annual basis by AJAC Directors and Supervisors.