Finding Text
FINDING 2022-001 This Finding is recurring. CRITERIA: Financial Statements are the responsibility of the client and should be prepared by them including footnotes. CONDITION: The District does not have an internal control system available or the personnel with the needed expertise and knowledge to prepare the financial statements. The auditor's draft the financial statements and notes. The district's management reviews the draft financial statements. EFFECT: Management or employees in the normal course of performing their assigned functions may not prevent or detect financial statement misstatement in a timely manner. CAUSE: The District has no one with the necessary expertise to prepare the financial statements and required footnotes. RECOMMEDNDATION: The District should retain an employee capable of preparing the financial statements and required footnotes. MANAGEMENT RESPOENSE: Due to the size of the District, It is the decision of management to accept this deficiency in light of the costs and other considerations.