Finding Text
Condition: Capital assets are not tracked adequately for proper presentation in the financial statements. Criteria: GASB Code section 1400. Cause of Condition: Capital assets, as defined by the District’s capitalization policy, are not adequately tracked for presentation in the government-wide financial statements. Effect of Condition: The potential exists to overstate expenditures and understate capital assets in the government-wide statements. Questioned Costs: none. Recommendation: We recommend contemporaneously adding capital assets to a subledger for tracking which should include assigning a useful life to the asset. Additionally, we recommend scanning relevant expenditure accounts for uncapitalized expenditures. Corrective Action Plan: Capital assets will be added as invoices occur and added to a subledger for tracking which will include assigning a useful life to the asset. Additionally, relevant expenditure accounts for uncapitalized expenditures will be scanned. Contact Person: Grant Accounting Specialist Anticipated Completion Date: 01/31/2026