Finding Text
Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present materially accurate financial statements for capital assets. Criteria: A good system of internal controls would provide for accurate representations of adjusted account balances for all District accounts prior to audit fieldwork, including the proper reporting of capital assets. Cause: Year-end entries related to capital assets were required in order to present the District’s capital assets records accurately. Effect: The District’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: We recommend that the District maintain an accurate capital asset schedule and review all additions, deletions, and accumulated depreciation. Corrective Action Plan: The Assistant Superintendent, along with staff, will review the capital asset schedules as part of the audit preparation process to prepare fully adjusted financial statements prior to audit fieldwork.