Finding Text
2024-001 Internal Control Criteria: As mandated by the Budget and Accounting Procedures Act of 1950, agencies are required to establish systems of internal control. The Federal Managers Financial Integrity Act of 1982 strengthened the system by requiring agency heads to report annually according to the prescribed control standards and guidance of the Government Accountability Office (GAO) and Office of Management and Budget (OMB). An organization’s internal controls are the policies, procedures, and processes designed to safeguard company assets and minimize risk. In fact, internal control compliance plays a vital role in providing reasonable assurance that company objectives are met in an efficient and effective manner, contributing to the overall success and sustainability of an organization. Condition: We were unable to obtain an understanding of the Authority’s internal controls, due to management’s inability to provide requested internal control documentation and related policies, procedures and processes. Questioned Costs: Unknown Effect: Without effective internal controls the Authority’s ability to provide reasonable assurance regarding the effectiveness and efficiency of operations, reliability of financial statements and compliance with applicable laws and regulations. Cause: Change in management. Recommendation: We recommend that the Authority establish an internal control system, which includes policies and procedure to minimize risks, protect assets, ensure accuracy of records and financial statements, promote operational efficiency and establishes policies and procedures.