Finding Text
Criteria: The Project is responsible for ensuring proper recording of depreciation expense to help ensure the
financial statements are prepared in accordance with U.S. GAAP.
Condition: Depreciation expense was overstated.
Cause: The Project improperly rolled forward accumulated depreciation from 2022 resulting in too high of
depreciation expense being recorded in order to reconcile to ending accumulated depreciation as noted on
the schedule.
Questioned Costs: None
Effect: Procedures were not in place to ensure that depreciation schedules were properly rolled forward from
2022.
Recommendation: We recommend the Project strengthen procedures to ensure proper roll forward of
depreciation schedules.
Views of Responsible Officials: Management concurs with the finding and recommendations.
Auditor’s Summary of Auditee’s Comments: improperly rolled forward accumulated depreciation from 2022
resulting in too high of depreciation expense being recorded in order to reconcile to ending accumulated
depreciation as noted on the schedule.
Management’s Response: Management concurs with the finding and recommendations. Management
concurs with the finding and recommendations. Management will implement an additional review step to
ensure opening balances on the depreciation schedules are in agreement with the prior year ending balances.