Finding Text
Condition
During the course of our engagement, we proposed material audit adjustments that affected the Authority’s revenue, receivables, capital assets, and lease activity.
Criteria
Management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair representation in the financial statements in accordance with GAAP. Management is responsible for the accuracy and completeness of all financial records and related information.
Effect
Errors in the preparation of year-end balances increases the risk related to financial statement misstatements.
Cause
The Authority has not established controls over year-end adjustments for reporting in accordance with GAAP.
Repeat Finding
2021-004
Recommendation
We recommend management implement policies and procedures to reconcile the balance sheet activity to supporting documentation.