Finding Text
Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct GASB 87 leases and personal property replacement tax revenue that was improperly recorded in prior years.
Criteria: A good system of internal controls would provide for accurate recording and reporting of GASB 87 leases and personal property replacement tax revenue on a regular basis in order to provide for accurate financial reporting.
Cause: Year-end entries related to GASB 87 leases and personal property replacement tax revenue were required in order to accurately present the District’s financial statements.
Effect: A material adjustment to the District’s beginning fund balance was required to properly state GASB 87 leases and personal property replacement tax revenue.
Recommendation: We recommend the District implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements.
Corrective Action Plan: The District will implement internal controls to properly record GASB 87 leases
and personal property replacement tax revenue on a timely basis prior to audit fieldwork.