Cary Community Consolidated School District 26

Accounting Software Condition: During audit fieldwork, our testing we noted the District is using an accounting software package that is outdated and provides minimal support for issues that arise. The software allowed for funds to be out of balance and Trial Balances that did not match the general ledger, and journal entries to be posed to prior fiscal years. Criteria: A good software system should restricted the capability of posting one-sided entries and should close each fiscal year to not allow for journal entries to be posted in prior fiscal years. Cause: Year-end entries were required in order to balance funds and accurately present the District’s financial statements. Effect: The District’s financial statements did not represent the actual activity of the fiscal year audited at audit fieldwork. Recommendation: We recommend the District review the current accounting software package and investigate the purchase of a new software. If the District retains the software package, we recommend the District ensure funds are balanced and the general ledger matches the trial balances provided at audit fieldwork.

Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all District accounts prior to audit fieldwork. Cause: Year-end entries related to various accruals and other items were required in order to accurately present the District’s financial statements. Effect: The District’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of general ledger balances. This review and adjustment will aid in the appropriate budgeting and management of the District’s financial activities and resources.