Finding Text
During our procedures over the Authority’s funds received from FEMA we noticed the following:
1. All funds received from FEMA were recorded as revenue without analyzing if revenue
recognition was correct. When examining the evidence received, we noticed many of the
funds were capital advances in which the Authority had recognized as revenue without
expending the funds. These funds were included in the original Schedule of Expenditures
and Federal Awards (SEFA) without being expended.
2. The authority did not make clear distinction on the correct federal award of the funds
received on the accounting records. There were funds that belonged to ALN 97.036, Disaster
Grants - Public Assistance (Presidentially Declared Disasters) while others belonged to ALN
97.039, Hazard Mitigation Grant Program, however, the Authority did not make this
distinction originally identifying them all under ALN 97.036.