Audit 371616

Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct accounts payable that were improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of accounts payable on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to accounts payable were required in order to accurately present the Airport’s financial statements. Effect: A material adjustment to the Airport’s beginning fund balance was required to properly state accounts payable. Recommendation: We recommend the Airport implement effective internal controls in order to providean accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The Airport and Director of Finance will implement internal controls to properly record accounts payable on a timely basis prior to audit fieldwork.