United Women East Africa Support Team

Financial Close for some Assets, Liabilities and Net Assets Condition: We noted that the financial close accounting process for certain assets, liabilities and net assets were not properly reported. Criteria: In accordance with accounting principles generally accepted in the United States of America and generally accepted Government Auditing Standards, organizations are to properly record their financial close to ensure that all accounts are properly reconciled and recorded. Cause: Management has not performed the financial close procedures to ensure these accounts are properly reconciled. Effect: Without management ensuring a proper financial close procedure for these accounts, the financial statements contain material errors. Recommendation: We recommend that the Organization require that a financial close policy be implemented which requires a review of all accounts to ensure they are properly reconciled on a monthly basis.

Account Coding and Approvals Condition: We noted that many transactions did not contain account coding or approval prior to being recorded in the accounting system. We did note that invoices were review prior to payment being made, however. Criteria: In accordance with accounting principles generally accepted in the United States of America and generally accepted Government Auditing Standards, organizations are to record and approve transactions prior to entering them into the accounting system. Cause: Management has not performed these procedures to ensure the transactions were properly entered. Effect: Without management ensuring the proper coding and approval, it is possible that transactions could be entered incorrectly into the accounting system. Recommendation: We recommend that the Organization require that financial transactions be coded and approved in a policy to ensure they this is performed on a routine basis.

Completing Single Audit Within Nine Months of Year End Condition: We noted that the Organization did not track its federal awards to ensure that an audit completion would be completed within nine months of the fiscal year end. Criteria: In accordance with accounting principles generally accepted in the United States of America and Uniform Guidance, organizations are to complete an audit with nine months of fiscal year end when it expends $750,00 in federal expenditures. Cause: Management did not track its federal awards on a schedule to ensure that an audit could be completed within nine months of fiscal year end. Effect: Without management tracking its federal expenditures, it is possible that future periods could go unidentified as well. Recommendation: We recommend that the Organization require formal tracking of federal expenditures to ensure that they can close their books and be able to meet the filing timeline of no later than nine months after year end when expending $750,000 or more in federal funding.