Finding Text
Significant Audit Adjustments Condition: During our audit, we recommended several significant audit adjustments to the District's accounts to adjust balances after audit evidence provided material differences. Areas affected by these audit adjustments included prepaid expenses, net pension liability, personal property replacement taxes receivable, sewer and debt fees receivable, and compensated absences. Criteria: Management is responsible for establishing and maintaining adequate internal control over financial reporting. This includes reviewing new accounting standards and determining if the District has activities that fall under the direction of those standards. Cause: The District failed to adjust accruals to actual, recognize certain items in the proper period, and properly adopt new standards due to its lack of financial expertise. Effect: Prior financial statements could have misled users regarding the District's net position and result of operations. Recommendation: We recommend that management implement procedures to reconcile their books in accordance with generally accepted accounting principles all items and apply procedures to adopt new standards when they become required. Repeat Finding: This is a new finding for April 30, 2025.