Audit 16663

2022-001 The Fire District should have internal controls in place that enable it to prepare complete financial statements (recurring). Criteria: The Fire District should have internal controls in place that enable it to prepare complete financial statements, including note disclosures, in compliance with generally accepted accounting principles. Condition: Management was unable to prepare draft financial statements, including the related notes to the financial statements. Cause: The Fire District lacks personnel with the expertise to apply generally accepted accounting principles in preparing its financial statements including note disclosures and thus, does not have the internal control procedures required to draft the financial statements in conformity with generally accepted accounting principles. Effect: Management engaged the auditor to prepare draft financial statements, including the related notes to the financial statements. Management reviewed, approved, and accepted responsibility for the financial statements prior to their issuance. Recommendation: We recommend management review the costs and benefits involved to retain a consultant with the required expertise to prepare the financial statements or review the financial statements as prepared by the auditor for compliance with generally accepted accounting principles. Response: The Fire District does not believe that hiring a professional consultant to aid in financial reporting would be cost effective or economically feasible at this time.

2022-002 The Fire District is required to have internal controls in place that enable it to apply generally accepted accounting principles to its transactions (recurring). Criteria: The Fire District is required to have internal controls in place that enable it to apply generally accepted accounting principles to its transactions. Specifically, this includes accounting for property taxes and year-end accrual transactions. Condition: The Fire District executes basic and routine transactions throughout the year; however, the Fire District does not apply generally accepted accounting principles to certain non-routine transactions recorded during the year and in making its year-end accruals. Cause: The Fire District lacks personnel with the expertise to apply generally accepted accounting principles to its transactions. Effect: Management relied on the auditor?s year-end adjustments to bring the Fire District?s accounting records into compliance with generally accepted accounting principles. Management reviewed, approved, and accepted responsibility for the adjusting journal entries prior to the issuance of the financial statements. Recommendation: We recommend management review the costs and benefits involved to retain a consultant with the required expertise to advise the Fire District during the year concerning non-routine transactions and to assist the Fire District with its year-end close so that the Fire District?s accounting records will be in compliance with generally accepted accounting principles. Response: The Fire District does not believe that hiring a professional consultant to aid in financial reporting would be cost effective or economically feasible at this time.

2022-001 The Fire District should have internal controls in place that enable it to prepare complete financial statements (recurring). Criteria: The Fire District should have internal controls in place that enable it to prepare complete financial statements, including note disclosures, in compliance with generally accepted accounting principles. Condition: Management was unable to prepare draft financial statements, including the related notes to the financial statements. Cause: The Fire District lacks personnel with the expertise to apply generally accepted accounting principles in preparing its financial statements including note disclosures and thus, does not have the internal control procedures required to draft the financial statements in conformity with generally accepted accounting principles. Effect: Management engaged the auditor to prepare draft financial statements, including the related notes to the financial statements. Management reviewed, approved, and accepted responsibility for the financial statements prior to their issuance. Recommendation: We recommend management review the costs and benefits involved to retain a consultant with the required expertise to prepare the financial statements or review the financial statements as prepared by the auditor for compliance with generally accepted accounting principles. Response: The Fire District does not believe that hiring a professional consultant to aid in financial reporting would be cost effective or economically feasible at this time.

2022-002 The Fire District is required to have internal controls in place that enable it to apply generally accepted accounting principles to its transactions (recurring). Criteria: The Fire District is required to have internal controls in place that enable it to apply generally accepted accounting principles to its transactions. Specifically, this includes accounting for property taxes and year-end accrual transactions. Condition: The Fire District executes basic and routine transactions throughout the year; however, the Fire District does not apply generally accepted accounting principles to certain non-routine transactions recorded during the year and in making its year-end accruals. Cause: The Fire District lacks personnel with the expertise to apply generally accepted accounting principles to its transactions. Effect: Management relied on the auditor?s year-end adjustments to bring the Fire District?s accounting records into compliance with generally accepted accounting principles. Management reviewed, approved, and accepted responsibility for the adjusting journal entries prior to the issuance of the financial statements. Recommendation: We recommend management review the costs and benefits involved to retain a consultant with the required expertise to advise the Fire District during the year concerning non-routine transactions and to assist the Fire District with its year-end close so that the Fire District?s accounting records will be in compliance with generally accepted accounting principles. Response: The Fire District does not believe that hiring a professional consultant to aid in financial reporting would be cost effective or economically feasible at this time.