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Need to improve financial reporting and property and equipment records
Accounting reports contained inaccurate information |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
EQUIPMENT AND CAPITAL LEASES NOT PROPERLY REPORTED
The Board is required to report assets in the quarter they are purchased. The Board
did not record an equipment item, totaling $10,589 on its Quarterly Fixed Asset Reports.
Additionally, the Board did not properly capitalize lease payments totaling $41,368.
We recommended the Board establish accountability over its fixed assets, as required by
Statue and the Statewide Accounting Management Procedures. We further recommend, the Board
familiarize itself with the criteria of FASB Statement No. 13, accounting for leases.
(Finding 1, page 9-10) This finding has been repeated since 1996.
Board officials agreed with our finding and recommendation and stated procedures
have been implemented to properly report property transactions. (For previous Board
responses, see Digest Footnote 1.)
ACCOUNTING REPORTS WERE SUBMITTED WITH INACCURATE INFORMATION
The Board is required to submit accurate GAAP Reporting Forms to the State
Comptroller’s Office which summarize its yearly financial activities and status of
funds at year-end. We noted the following errors:
- equipment additions and Capital Leases-Equipment deletions were both understated by
$25,000;
- accumulated depreciation additions for Equipment and Capital Leases-Equipment deletions
were overstated by $34,000 and $13,000, respectively; and
- accumulated depreciation deletions for Equipment and Capital Lease-Equipment were
understated by $28,000 and $11,000. (Finding 2, page 11)
The Board accepted our recommendation to accurately report all information on the GAAP
Reporting Forms.
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