Audit 397984

Segregation of Duties- Criteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately. Condition: There is a lack of segregation of duties among Authority personnel. Effect: Transactions could be mishandled. Cause: There are a limited number of personnel for certain functions. Identification of a repeat finding: This is a repeat finding from the immediate previous audit. Recommendation: The duties should continue to be separated as much as possible, and alternative controls should continue to be used to compensate for lack of separation. The governing board should continue to provide some of these controls. Views of responsible officials and planned corrective actions: The Authority agrees with this finding and the Board will continue to provide some of these controls. Please refer to the corrective action plan.

Budgetary Accounting for Appropriations- Criteria: G.S. 159-28(a) states that no obligation may be incurred in a function accounted for in a fund included in the budget ordinance unless the budget ordinance includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay in the current fiscal year the sums obligated by the transaction for the current fiscal year. Condition: The Burlington-Alamance Airport expended $21,315 more for capital outlay than appropriated in the annual budget ordinance. Effect: Moneys were spent that had not been obligated and appropriated. Cause: The Burlington-Alamance Airport expended funds on capital outlay that had not been budgeted for in the budget ordinance and a budget amendment was not adopted. Recommendation: Before an obligation is to be incurred that will exceed the amount that was previously approved in the budget ordinance, an amendment to the budget should be adopted. Views of responsible officials and planned corrective actions: The Burlington-Alamance Airport agrees with this finding. The Burlington-Alamance Airport will be more attentive to budget line items and prepare and present budget amendments in a timely manner.