Finding 1073789 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
$1
Year
2023
Accepted
2024-09-19

AI Summary

  • Core Issue: The Authority failed to accurately record significant transactions for the General Fund, Special Projects Fund, and EDF Fund during the audit period.
  • Impacted Requirements: Financial records did not reflect all activity for the period, risking material misstatements; this is a repeat finding from last year.
  • Recommended Follow-Up: The Authority should strengthen internal controls to ensure all transactions are properly identified and recorded in the correct period.

Finding Text

Financial Statement Findings: Accounting Records Criteria: The accounts of the Authority shuold include all significant transactions in the period of benefit. Condition: During the audit, certain audit adjustments were required to record transactions in the period of benefit for the General Fund, Special Projects Fund, and EDF Fund. Cause: The Authority improperly recorded/reversed certain prior year accruals, booked certain prior year audit adjustments twice and did not record grant revenue to match grant expenditures in the current year. The Authority also did not properly record certain substanital transactions on the Special Fund, or the EDF Fund. Effect: The financial records for the General Fund, Special Projects Fund, and EDF Fund did not reflect the financial activity in the period of benefit, which could result in a material misstatement of the financial statements. This is a repeat finding from a previous year - Finding 2022-001. Recommendation: The Authority should enusre that internal control procedures over financial reporting are sufficient to identify and record all transactions in the period of benefit. Management Response: The Authority has initiated addiitonal levels of review in order to sufficiently identify and record all transactions in the period of benefit.

Categories

Questioned Costs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 497347 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.905 Lead Hazard Reduction Demonstration Grant Program $1.06M