In today’s economic and political climate, there is tremendous scrutiny of the public sector’s capital allocation because the results are widely published. Accounting records must provide meaningful, reliable, accurate and timely information to the many persons and groups with legitimate interests in the financial affairs of an organization. With the thousands of transactions occuring in your financial system each year, each one provides an opportunity for human error, computer error, or manipulation. The audit performed on your books each year may or may not find those errors. Fortunately, the technology exists to provide the best possible results.
The role of your financial system is to organize and make available the transactions from which the audit data comes from. Fiscal year totals are required to prove the accuracy of the amounts paid and collected. Quarter year totals are required for reporting tax withholdings or Social Security information to Federal and State government. Each time a transaction occurs, whether it be payroll or a receipt, several journal entries may be created. The journal provides a permanent record of each completed transaction in the form of a journal entry. Auditors pay close attention to the description on journal entries because it is an explanation of why the transaction was made.
There are a few ways RDA Financial Management can help you to continuously be prepared for your annual audit. One of the best tools RDA has is to run the “Check Controls Report” monthly. This report will tell you if the revenue and expenditure subsidiary totals are the same as the Expenditure and Revenue Control code balances. Also important is to review your Trial balance report once per month to ensure you are on the right track.
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