Finding Text
Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets and lease receivables that were improperly recorded in prior years. Criteria: A good system of internal controls would provide for accurate recording and reporting of capital assets and lease receivables on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to capital assets and lease receivables were required in order to accurately present the District’s financial statements. Effect: A material adjustment to the Airport’s beginning fund balance was required to properly state capital assets and lease receivables. Recommendation: We recommend the Airport implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements.Corrective Action Plan: The Airport and Director of Finance will implement internal controls to properly record capital assets and lease receivables on a timely basis prior to audit fieldwork.