Finding Text
SECTION II ? FINDINGS RELATED TO FINANCIAL STATEMENTS Finding 2022-001 ? Internal Control over Financial Reporting Material Weakness Criteria: The Authority must properly record and report all fixed assets and net fixed assets. Condition: During testing, inquiry, and observation, we noted the Authority changed fee accountants during the year. During the conversion the authority added material fixed assets to the financial statements for assets that had been removed from service and disposed of in the prior year. The authority also inappropriately deleted a material fixed asset that was still in service. Additionally unsubstantiated prior period adjustments were made to fixed assets. The authority did not properly capitalize material purchases of capital equipment during the year. Cause and Effect: The Authority improperly recorded material fixed assets which resulted in the material overstatement of fixed assets and overstatement of maintenance expenses during the year. Recommendation: The Authority needs to work with the fee accountant to ensure the proper recording of fixed assets and expenses. View of Responsible Officials and Planned Corrective Action: We will work with our fee accountant to ensure our that fixed assets and expenses are appropriately recorded. Responsible Official: Cristi Lajeunesse, Executive Director