Finding Text
Condition: The District failed to correctly record accumulated depreciation and fixed assets in
Construction in Progress as they were completed.
Criteria: As fixed asset additions in construction in progress are completed and put in use, the fixed
asset additions are to be classified according to the type of addition they are.
Effect: The District’s net capital assets and net income are overstated and do not accurately reflect their
financial position.
Cause: Management failed to correctly record and classify assets from Construction in Progress as they
were completed.
Recommendation: We recommend at year-end, the Board and bookkeeper review and reconcile the
completion dates of fixed assets in construction in progress to financial information pertaining to
construction in progress to ensure clerical accuracy.
Auditee Response: At each year-end the Board will schedule a review with the bookkeeper to reconcile
completion dates of fixed assets in construction in progress to financial information pertaining to
construction in progress to ensure clerical accuracy.