Finding Text
Statement of Condition:
Significant Deficiency - The District does not have an internal control system designed to provide for the preparation of the financial statements and related financial statement disclosures. As auditors, we were requested to draft the financial statements and accompanying notes to the financial statements.
Criteria:
Proper internal controls over financial reporting would include the ability to prepare financial statements including footnote disclosures.
Effect:
Although this circumstance is not unusual for a District of this size, the preparation of financial statements as a part of the audit engagement may result in financial statements and related information included in financial statements disclosures not being available for management purposes as timely as it would be if prepared by District personnel.
Cause:
The personnel of the District do not possess the knowledge or tools to prepare financial statement footnotes and required schedules.
Recommendation:
The District should appoint a competent individual, such as Edward Guries, Superintendent who possesses the skill knowledge and experience to review and approve the draft reports and assume all relevant management responsibilities.
Views of Responsible Officials and Corrective Action:
The District will strive to gain necessary knowledge needed to prepare a full set of financial statements. The District will appoint a competent individual who possesses the skill knowledge and experience to review and approve the draft reports and assume all relevant management responsibilities.