Finding Text
Criteria The District should have a system of internal controls, which are sufficiently designed to allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements of the financial statements on a timely basis. Condition Significant audit adjustments were required to correct errors and improper financial statement presentations. Cause Financial statement accounts were not reconciled with underlying records. Expenditures were not recorded in the proper period. Effect Without proper internal control over financial reporting material misstatements could occur. Recommendations The District should establish and adhere to policies and procedures relating to the reconciliation of financial statement accounts. In addition, invoices should be processed timely and recorded in the proper period. Management Response The District Agrees with the finding. The District will reevaluate internal controls regarding over financial reporting, including the preparation, review and approval of financial statements. The District will improved processes to ensure reconciliations with underlying accounting records are done timely.