Finding Text
Condition: Based on the District’s provided records, Construction in Progress and Accounts Payable
were recorded at $5,702,360 and $366,092 respectively. When reconciled with pay applications and
invoice tracking spreadsheets, both accounts are understated by $498,090.
Criteria: Correctly and accurately recording journal entries into the General Ledger.
Effect: The District’s Construction in Progress and Accounts Payable accounts do not reconcile with any
documentation provided.
Cause: Management failed to correctly record the account balance for Construction in Progress and
Accounts Payable.
Recommendation: We recommend at year-end, the Board and bookkeeper review and reconcile the
financial information pertaining to construction in progress and accounts payable to ensure clerical
accuracy.
Auditee Response: At each year-end the Board will schedule a review with the bookkeeper to
reconcile financial information pertaining to construction in progress and accounts payable to ensure
accuracy.