WAYPOINT SERVICES FOR WOMEN, CHILDREN AND FAMILIESNon-Profit

Criteria and Condition: An effective system of internal controls over financial reporting should be designed to allow for the timely and accurate reconciliation and review of reconciliations to ensure the accounting records are complete and accurate. During the audit, we identified one month of the year where the monthly reconciliation was not completed timely, and the reconciliation varied from the amount submitted for reimbursement. Cause: While the amount that was submitted for reimbursement was still allowable, there were missed maximum reimbursements for one month out of the year due to missing the monthly reconciliation. Additionally, there was no documentation of review of the monthly reconciliations. Effect: Reimbursement request for the one month of the year was understated in comparison to the maximum amount that could have been received. Recommendation: We suggest management ensure the monthly reconciliation are prepared timely and reconciled to ensure that federal awards agree without error. Additionally, we suggest management document reviews of the reconciliation reports. Response: Management will perform the monthly reconciliations in a timely manner to ensure that all federal awards are in agreement with what is sent in for reimbursable reports. Additionally, management will review the reconciliation reports in a timely manner. Conclusion: Response accepted.