FAC Explorer

Audit 313176

FY End
2022-06-30
Total Expended
$4.71M
Findings
16
Programs
11
Organization: Phoenix Central School District (NY)
Year: 2022 Accepted: 2022-10-10
Auditor: Grossman St Amour CPAS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
447541 2022-001 Significant Deficiency - AN
447542 2022-001 Significant Deficiency - AN
447543 2022-001 Significant Deficiency - AN
447544 2022-001 Significant Deficiency - AN
447545 2022-001 Significant Deficiency - AN
447546 2022-001 Significant Deficiency - AN
447547 2022-001 Significant Deficiency - AN
447548 2022-001 Significant Deficiency - AN
1023983 2022-001 Significant Deficiency - AN
1023984 2022-001 Significant Deficiency - AN
1023985 2022-001 Significant Deficiency - AN
1023986 2022-001 Significant Deficiency - AN
1023987 2022-001 Significant Deficiency - AN
1023988 2022-001 Significant Deficiency - AN
1023989 2022-001 Significant Deficiency - AN
1023990 2022-001 Significant Deficiency - AN

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.05M Yes 1
84.010 Title I Grants to Local Educational Agencies $521,225 - 0
10.553 School Breakfast Program $204,959 - 0
84.367 Improving Teacher Quality State Grants $88,772 - 0
10.555 National School Lunch Program $72,137 - 0
84.196 Education for Homeless Children and Youth $42,288 - 0
84.424 Student Support and Academic Enrichment Program $34,315 - 0
84.027 Special Education_grants to States $29,422 - 0
10.559 Summer Food Service Program for Children $21,643 - 0
84.173 Special Education_preschool Grants $5,835 - 0
10.649 Pandemic Ebt Administrative Costs $1,803 - 0

Contacts

Name Title Type
EFP6QKK7SZD4 Karl Seckner Auditee
3156951574 Linda Gabor Auditor
No contacts on file

Notes to SEFA

Title: basis of presentation Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of PhoenixCentral District's federal award programs and presents transactions that are included in the financialstatements of the District presented on the modified accrual basis of accounting, as required byaccounting principles generally accepted in the United States of America. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards presents the activity of federal awardprograms administered by the Phoenix Central School District, which is described in Note 1 to theDistricts accompanying financial statements, using the modified accrual basis of accounting. Federalawards that are included in the schedule may be received directly from federal agencies, as well as federalawards that are passed through from other government agencies. The information is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Therefore, some amounts presented in this schedule may differ from amounts presented in,or used in the preparation of, the financial statements.
Title: food distribution Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of PhoenixCentral District's federal award programs and presents transactions that are included in the financialstatements of the District presented on the modified accrual basis of accounting, as required byaccounting principles generally accepted in the United States of America. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District is the recipient of a federal award program that does not result in cash receipts ordisbursements. The District had $72,137 of food commodities in inventory under the National SchoolLunch Program (CFDA 10.555).

Finding Details

Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.
Finding 2022-001
Criteria: Expenditures incurred for voter-approved capital projects are reported in the capital projectsfund. In accordance with GASB 34, the District capitalizes fixed asset activity as a reconciling item on thegovernment-wide financial statements. Expenditures are reported as construction in progress until theproject is complete, where the total costs are capitalized and depreciated.Condition: The District contracts with a third party service to maintain fixed assets. Throughout the yearthe District sends additional disposal information to the third party to record within the fixed assetmodule. Reports are sent to the District and are used to reconcile the fixed asset activity reported in thegovernment-wide financial statements. In 2021-2022 the report of fixed asset additions did not agree tothe District's records by approximately $5.4 million for additions that were not entered in the properperiod. In addition, current year fixed asset additions did not reconcile to capital project expenditures byapproximately $895,000. The District did not perform a formal reconciliation of fixed asset activity,including construction in progress, to total project expenditures incurred resulting in proposedadjustments of approximately $31.5 million.Cause: The District does not perform a reconciliation of expenditures incurred within the fund financialstatements to the information sent to the third party service to ensure completeness and accuracy oftotal fixed asset activity.Effect: Fixed asset reports required adjustments of $31.5 million to agree to expenditures reported withinthe financial statements and construction in progress activity.Recommendation: We recommend the District review and reconcile fixed asset reports to projectexpenditures periodically throughout the year.Views of Responsible Official and Planned Corrective Actions: The District is reviewing fixed asset controlsand processes in place to implement additional reconciliation procedures moving forward.