Finding Text
FINDINGS AND QUESTIONED COSTS - FINANCIAL STATEMENT AUDIT 2022-001 Material Weakness ? Prior Period Adjustment Condition: The Authority?s underlying fixed asset records did not agree with physical fixed asset existence, resulting in a prior period adjustment. Criteria: Fixed asset account balances on the trial balance should agree with underlying supporting schedules and physical fixed asset existence. Cause: Upon sale of a fixed asset in the prior period, the Authority recorded the proceeds from the sale but did not relieve the fixed asset and corresponding accumulated depreciation from the trial balance or from the underlying fixed asset records. Effect: The discover of the error in the current period resulted in a prior period adjustment, in which the Authority corrected the affected account balances and underlying supporting schedules to agree with physical fixed asset existence. See Note 6 to the financial statements for further information. Recommendation: The Authority should perform a physical fixed asset observation on an annual basis to ensure physical fixed assets are accurately reflected in the underlying supporting schedules. Additionally, the underlying supporting schedules should be reconciled to the trial balance on an annual basis. Views of Responsible Officials: The Authority agrees with the finding and will implement internal procedures to perform annual fixed asset observations to ensure physical fixed assets agree with underlying supporting schedules, which will be reconciled to the trial balance on an annual basis.