Finding Text
Finding #2024-002 – Material Adjustments
Condition: Material auditing journal entries not prepared by the District before the audit were required to be recorded.
Effect: Financial reports generated by the accounting system may not provide an accurate reflection for the District’s financial position or activities.
Cause: An invoice was recorded as an expense in 2023/2024 that was a 2024/2025 expense. An adjustment was needed to record this cost in the correct period.
Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness.
Recommendation: Policies and procedures should be implemented to ensure receipts and invoices are properly recorded in the correct period.
Response: We will review the District’s procedures for recording receipts and invoices at year end to ensure they are recorded in the proper period.