Finding Text
2023-004 FINDING: Audit Adjustments
Federal Program Affected: Elementary and Secondary School Emergency Relief (ESSER)
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 for ESSER expenditures incurred but not yet received.
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.
Repeat Finding from Prior Year: Yes, prior year finding 2022-004. 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. Accounts payable and 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 recorded at year end to reflect federal expenditures not yet
reimbursed.
Response/Corrective Action Plan: The District agrees with the above finding. See Corrective Action Plan.