Finding Text
Condition: The Organization’s general ledger did not accurately reflect the account balances as of the year end. Criteria: The Organization should verify that all closing adjustments have been posted to accurately reflect the financial position and results of activities. Cause: The Organization does not verify that the ending balances are accurately reflected as of the year end. Effect: A significant number of audit adjustments were required to ensure that the correct ending balances were reflected in the Organization’s financial statements. Recommendation: Procedures should be implemented, and a formal closing process should occur where all year end balances are verified and reconciled to the supporting documentation and all necessary closing adjustments are recorded. Views of Responsible Official and Planned Corrective Actions: The Organization will implement procedures to ensure that upon acceptance of the annual audit, all audit adjustments are promptly posted to the Organization’s internal accounting software and all balances are reconciled to the final audit report.
Additional procedures will be implemented whereas throughout the fiscal year and at the year end, the Associated Director of Finance will review the internal financials in detail to determine if any adjustments are necessary in order for the Organization’s financials to be accurately stated.