Finding Text
Finding 2021-02 – Lack of Internal Control Over Financial Reporting – No Accounting for Fixed Assets
Criteria – Standard accounting practices dictate that a governmental proprietary funds record its fixed assets on the balance sheet.
Condition – As noted in Finding 2021-01, the Board does not use an accounting system. Therefore, there is no accounting for $2.9M in fixed assets at June 30, 2020 and $8.8M in fixed assets at June 30, 2021.
Effect – The Board cannot accurately list, track, or depreciate its fixed assets with auditor assistance.
Recommendation – The Board should immediately consult with an accountant to enter the Board’s fixed assets into an appropriate accounting system.
Management’s Response – The Board has contracted with a local Accountant to begin entering all Board financial records into Quick Books online.