Finding 1089519 (2024-001)

Criteria: SAS 115 requires the communication, in writing, to management and those charged with governance, of material weaknesses identified in an audit. Condition: The District does not have an internal control system designed to provide for the preparation of the financial statements and the schedule of expenditures of federal awards being audited. Cause: Accounting personnel of the District do not have the expertise to prepare financial statements, including note disclosures and the schedule of expenditures of federal awards, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Effect or protentional effect: The control deficiency is a material weakness that results in a reasonable possibility that a material misstatement of the financial statements and schedule of expenditures of federal awards will not be prevented, or detected and corrected, on a timely basis. Recommendation: The District should continue to rely on the board of director’s review functions to mitigate risks of potential misstatements. Views of responsible officials: The District will continue to rely on its system of oversight provided by the board of directors in reviewing the financial statements, including note disclosures and the schedule of expenditures of federal awards, of the District. Repeat Finding 2023-001