Office of the State Treasurer Bank Reconciliations FY24
Agreed-Upon Procedures – Fiscal Year 2024
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Report Summary
Background
The Auditor of Accounts (AOA) performed an Agreed-Upon Procedures engagement on bank reconciliations prepared by the Office of the State Treasurer (OST) for each quarter end of fiscal year (FY) 2024. OST’s bank reconciliation team reconciles the collections and disbursements recorded with banks with what is recorded in the state’s accounting system (First State Financials). The team ensures the total amounts are accurately recorded in both systems. OST continues to work on their transition from Trintech to Frontier reconciliation software with an estimated completion date no later than June 30, 2027.
The OST Reconciliation and Transaction Management team was responsible for the reconciliation of Delaware’s 35 cash and investment accounts in fiscal year 2024. As of June 30, 2024, the total balance of Delaware’s Cash and Investment accounts was $7,567,102,772.68.
AOA is authorized under 29 Del. C. §2906 to perform this engagement.
Key Information and Findings
The books and records are kept in accordance with generally accepted accounting principles and are reconciled with the various bank accounts. In the performance of the agreed upon procedures, AOA observed exceptions in five out of the nine agreed-upon procedures performed, including:
- Account closures: An account was closed without completion of a TR-1b form. (Procedure 1)
- Activity by Balance Sheet (DGL046) Report Discrepancies: AOA identified corrections and adjustments that were not performed timely (within 30 to 60 days post quarter end) by OST. (Procedure 2)
- Zero Balance Accounts: Differences in policies regarding transaction timeliness resulted in variations in reporting accuracy and reconciliation practices. (Procedure 7)
- Policy and Procedures: OST continues to use the policies and procedures last revised August 2005 which reflect outdated reconciliation processes, bank account information, and system information. (Procedures 8 and 9)