Finding Text
Federal Program Affected: ESSER Fund Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: During the course of our engagement, we assisted with adjusting SDRS pension activity and we proposed material audit adjustments. The adjustments included: a. Adjusting property tax receivable and unavailable revenue b. Adjusting capital assets of governmental activities c. Adjusting accounts payable and accrued leave d. Adjusting reoffering premium amortization on refunding bonds e. Adjusting federal revenue and receivable Other entries were proposed as part of the audit but were not recorded due to the overall insignificance on the financial statements. Criteria and Effect: These adjustments were not recorded through the District?s existing internal controls, and therefore, resulted in a material misstatement of the District?s financial statements. As in past audits, these adjustments were made by us as part of our audit process. Recommendation: We recommend management adjust all significant accounts at year end. This will provide the District with accurate financial information. Specifically: a. Property tax receivable and related revenues should be monitored and adjusted at least annually b. Capital expenditures should be capitalized and depreciated over the useful life of the asset c. Accrued leave balances should be monitored and recorded on an annual basis d. Amortization on refunding bonds should be recorded over the life of the bond e. Federal revenue and receivables should be adjusted at year end for accuracy Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.