Finding Text
Criteria:
Generally, a system of internal control includes the ability to understand and prepare the Authority's financial statements in accordance with accounting principles generally accepted in the United States of America.
Condition:
Due to the limited size of the Authority's business staff and related resources available, material audit adjustments were required for the financial statements to be presented in accordance with accounting principles generally accepted in the United States of America.
Effect:
Audit adjustments were necessary to correct material misstatements noted during the audit for the financial statements to be in compliance with generally accepted accounting principles.
Cause:
Limited number of staff and hours available preclude the Authority from having proper resources to prepare all required adjusting journal entries necessary in preparing financial statements.
Recommendation:
The Authority should continue to review internal controls currently in place and improve internal controls over financial reporting so that financial statements are in compliance with generally accepted accounting principles.
Views of Responsible Officials and Planned Corrective Actions:
The Authority is in agreement with the finding. The Authority will continue to review the accounting system and related financial reporting system to identify and correct material misstatements to the financial statements.