Finding 12698 (2022-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-02-21

AI Summary

  • Core Issue: The Authority lacks adequate procedures for reviewing in-kind revenues and expenses.
  • Impacted Requirements: Internal controls for accurately recording in-kind revenues and expenses are insufficient.
  • Recommended Follow-Up: Revise and enhance review procedures to ensure proper recording and oversight of in-kind transactions.

Finding Text

SIGNIFICANT DEFICIENCY: 2022-003 In-Kind Procedures: Criteria ? The Authority is responsible for establishing and maintaining internal controls for recording in-kind revenues & expenses. Condition ? During the performance of our audit, it was determined that the review procedures for in-kind revenues and expenses were not adequate for identifying if improper amounts were recorded. Cause ? The Authority has not designed adequate procedures for reviewing in-kind revenues and expenses. Effect ? As a result of these inadequate procedures, there is a higher threat that errors or improper amounts could be recorded as in-kind revenues and expenses. Recommendation ?The Authority should review and revise procedures to ensure in-kind revenues and expenses are being properly recorded and reviewed. Client?s Response ? We will review our current procedures to ensure in-kind revenues and expenses are properly reviewed and recorded in the financial statements in the future.

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 12697 2022-003
    Significant Deficiency
  • 589139 2022-003
    Significant Deficiency
  • 589140 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.509 Formula Grants for Rural Areas and Tribal Transit Program $958,220
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $257,437