Board of Directors Padre Dam Municipal Water District Santee, California

Size: px

Start display at page:

Download "Board of Directors Padre Dam Municipal Water District Santee, California"

Stuart Shelton
6 years ago
Views:

Board of Directors Padre Dam Municipal Water District Santee, California In planning and performing our audit of the financial statements of the Padre Dam Municipal Water District (the District) as

1 Board of Directors Padre Dam Municipal Water District Santee, California In planning and performing our audit of the financial statements of the Padre Dam Municipal Water District (the District) as of and for the year ended June 30, 2012, in accordance with auditing standards generally accepted in the United States of America, we considered the District s internal control over financial reporting (internal control) as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District s internal control. Accordingly, we do not express an opinion on the effectiveness of the District s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the following deficiencies in the District s internal control to be material weaknesses: Timely Bank Reconciliations During our audit, it was noted that bank reconciliations were not always prepared on a timely basis and reconciling items were not attached to the bank reconciliations. We recommend that all bank accounts be reconciled timely (monthly if possible), agreed to the general ledger, reviewed, and approved by appropriate personnel. We also recommend all differences on the bank reconciliations between book and bank balances be investigated on a timely basis by appropriate accounting personnel so that errors and adjustment can be quickly identified and corrected. Managements Response: Customers can pay their water/sewer bills by cash, check, credit card, or online. When payment is made online by customers, their account is credited immediately by the District. However, there is a delay in processing by the bank s third party processor. This delay creates a timing difference that makes reconciling the bank account difficult. We have worked with the bank s third party processor to generate reports that will make reconciling the bank account simpler. As a result the District was able to set up a report that reconciled the timing difference in online payments received. The checking account is now being reconciled on a monthly basis Roosevelt Street, Carlsbad, CA Tel: Fax: Offices located in Orange and San Diego Counties

2 Journal Entry Authorization During our audit, it was noted that journal entries do not require authorization prior to posting to the general ledger. We recommend the District implement a policy to have all journal entries reviewed by appropriate personnel prior to posting to the general ledger. Managements Response: There are several adjustments made throughout the year. Some of these adjustments are routine entries that are automatically generated by the accounting computer system. The less routine entries are made manually and posting of these entries is limited to either Director of Finance or Accounting Manager. There is a report that can be printed that shows adjustments for a specific period, including who originated/posted the entry. This report gives staff a way to review all transactions. * * * * This communication is intended solely for the information and use of management, the Board of Directors, and others within the District, and is not intended to be, and should not be, used by anyone other than these specified parties. Padre Dam Municipal Water District s written responses to the material weaknesses identified in our audit has not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. January 29, 2013 Carlsbad, California - 2 -

CITY OF IRVINE, CALIFORNIA AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2018

CITY OF IRVINE, CALIFORNIA AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2018 CITY OF IRVINE, CALIFORNIA AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND TABLE