Finding Text
Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets due to a new appraisal and to report Accumulated Depreciation. This appraisal was completed in response to previous recommendations. Criteria: A good system of internal controls would provide for accurate recording and reporting of capital assets on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to capital assets were required in order to accurately present the District’s financial statements. Effect: A material adjustment to the District’s beginning net position was required to properly state capital assets. Recommendation: We recommend the District implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements, including the reporting of Accumulated Depreciation. Corrective Action Plan: The District implemented a new capital asset appraisal in order to have accurate historical records of all assets owned by the District. These schedules will be updated on an annual basis to reflect accurate reporting requirements.