Finding Text
Material Weakness ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: The District is responsible for establishing and maintaining internal control and for the fair presentation of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards, and schedule of state financial assistance in conformity with generally accepted accounting principles (GAAP) of the United States. Condition: The potential exists that a material misstatement of the District?s financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance could occur and not be prevented or detected by the District?s internal control. Cause: The District does not have staff trained to prepare GAAP financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance. Effect: The District engages the audit firm to prepare drafts of its financial statements, disclosures, supplementary information, schedule of expenditures of federal awards and schedule of state financial assistance in accordance with GAAP based on information and trial balances provided by the District. Recommendation: The District should consider providing training on GAAP to accounting personnel.