The reconciliation process accounts for the differences between the balances appearing on the bank statements and the balance of cash according to the City’s records.
It is the government equivalent of balancing your personal checking account each month.
Failure to perform bank reconciliations is cited as one of the five material deficiencies in the 2008 audit.
Because the City could not reconcile the 2007 and 2008 bank accounts, the City had to write-off $21,920 in 2007 and $18,475 in 2008. In other words, over two years, $40,395 simply went missing.
See Finding Number 2008-008 and 2008-009: http://www.auditor.state.oh.us/auditsearch/Reports/2010/City_of_Richmond_Heights_08_07-Cuyahoga.pdf.)
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