Finding Text
Finding 2024-001 Criteria: The Authority did not maintain adequate internal controls over financial reporting. Condition: During audit testing we noted the following: The Authority recorded a prior period adjustment in order to correct misstatements of deferred inflows of resources and leases receivable. Numerous adjusting entries were required to present the Authority's financial statements in accordance with GAAP. Cause: Controls were not fully executed to ensure that the Authority recorded and reported financial data consistently and reliably in accordance with generally accepted accounting principles. Effect: The Authority required an immoderate number of adjustments in order to report accurate results in accordance with generally accepted accounting principles. Auditors' Recommendation: We recommend the Authority implement their internal controls; specifically, the Authority should ensure they are performing monthly procedures whereby financial statements and general ledger accounts are reviewed for accuracy and reconciled to their subsidiary ledgers. Authority Response and Planned Corrective Action: The Authority agrees with the findings and is in process of assessing and modifying internal controls to avoid similar issues. The Authority will reconcile the statement of financial position and other key account balances on an ongoing and periodic basis. The Authority will also reconcile account balances following any large and unusual adjusting entries. Aaron Estabrook, Executive Director, is responsible for implementing this corrective action by December 31, 2025.