Finding Text
Material jounal entires were proposed during the audit process - Material Weakness Condition: During the course of the engagement, we proposed material audit adjustments that were not identified as a result of the District's existing internal controls, and therefore could have resulted in a material misstatementof the District's financial statements. Criteria: A good system of internal accounting control contemplates an adequate system for recording and processing entries material to the financial statements. Cause: The District does not have an internal control system designed to identify all necessary adjustments. Effect: The deficiency could result in a misstatement to the financial statements that wold not be prevented or detected. Context: These entries covered both federal and nonfederal transactions. Recommendation: The District's management should develop a thorough review and reconciliation of accounts in each fund that should be performed prior to the beginning of the audit. This review should be performed at both the accounting staff and administrative levels. View of Responsible Officials and Planned Corrective Actions: The District is aware of the situation and has hired additional business office staff and will provide additional training for UFARS reporting. Repeat Finding: No