Community Care AllianceNon-Profit

Condition: During fiscal 2019, bank account, accrual and accounts receivable reconciliations were not prepared and reviewed in a timely manner. Criteria: In order to make the financial reports generated by the accounting system as meaningful as possible, the Organization should reconcile the general ledger accounts for cash, accrued liabilities and accounts receivable to supporting documentation on a monthly basis. A benefit of monthly reconciliations is that errors do not accumulate, but can be identified and attributed to a particular period, which makes it easier to perform future reconciliations. Perspective and Questioned Costs: Undeterminable. Cause and Effect: As of June 30, 2019, several cash, accruals and accounts receivable accounts were not reconciled. (Note: All accounts through June 30, 2019 were subsequently reconciled.) Recommendation: We recommend that accounts receivable listings be reconciled to the general ledger on a monthly basis and that bank accounts should be reconciled and reviewed for accuracy and completeness on a timely basis by an appropriate member of management. In addition, all accrued liabilities should be properly reconciled monthly to ensure proper reporting of liabilities and expenses. View of Responsible Officials: Management agrees with the finding. CCA has subsequently put controls into place to ensure all accounts are reconciled on a timely basis and reviewed appropriately.