Finding Text
Finding Number: 2025-002 - Schedule of Expenditures of Federal Awards Criteria: The Authority is responsible for designing, implementing and maintaining effective internal control over the preparation of the schedule of expenditures of federal awards (the Schedule) that provides reasonable assurance that the internal controls will prevent misstatements, intentional or unintentional, from occurring, or detect and correct misstatements on a timely basis. Condition Found: Subsequent to the issuance of the Schedule for the year ended June 30, 2025, management identified that expenditures related to the U.S. Department of Commerce, National Telecommunications and Information Administration Middle Mile Grant Program, Assistance Listing No. 11.033, were inadvertently omitted from the Schedule submitted to the Federal Audit Clearinghouse. Cause and Effect: This condition was primarily due to the implementation of a new general ledger system during the fiscal year ended June 30, 2025. The conversion process resulted in misclassification of certain receivables and deferred revenue balances, which required manual adjustments within the financial system. The Schedule was not reconciled to the audited financial statements for the year ended June 30, 2025. The lack of timely reconciliation increases the risk that material misstatements may not be identified and corrected promptly, thereby impacting the accuracy and timeliness of financial reporting. Recommendation: We recommend management implement a formal process to help ensure that the Schedule is reconciled in a timely manner. Identification as a Repeat Finding, if applicable Not applicable. Management response: While the Authority was aware that the system conversion could result in temporary delays in reconciliation and reporting, the extent and duration of these delays were more significant than anticipated and resulted in the omission of the Schedule. Management agrees with the findings and recommendations.