Finding Text
The Authority engages the independent auditor to assist them with their external financial statement reporting, as the Authority’s accounting staff does not possess the necessary expertise with certain financial statement reporting and disclosure reporting requirements of generally accepted accounting principles, as is the case with most small organizations.External financial statement reporting, including footnote disclosures is a requirement of internal control over financial reporting. The operating budget for an organization the size of the Authority does not allow for hiring someone with this expertise. The financial statements prepared by management will be incomplete without adequate footnote disclosures. Unless and until the Authority’s accounting staff possesses the necessary expertise required for preparation of external financial statements in accordance with generally accepted accounting principles, this is considered a significant deficiency that must be reported as a finding. The Authority has determined that the operating budget cannot handle the additional expense of hiring someone with this expertise.