The board hired a new accounting firm in March 1999. The firm started the 1997-98 audit in May 1999 and completed the audit in August 1999. The 1998-99 AFR and LAR are currently in the final completion stage. However, these reports were not finalized as of our fieldwork completion date. Changes in business office personnel, local auditors and administration, including the director, assistant director and business manager, contributed to the instability, unreliability of financial records, and weak internal controls in the accounting and business departments.
Internal control is the responsibility of management.
Good internal control is essential to achieving the proper conduct of government business with full accountability for the resources available. Proper annual financial reporting allows for appropriate budgetary action to be taken, and segregation of duties also facilitate the achievement of management objectives by serving as checks and balances against undesired actions. Good internal controls also provide management with assurance that data is collected, recorded, and reported accurately in accordance with management's intent. Response of Management Management agreed with the finding and offered no response at this time. Response of Management Management agreed with the finding but offered no further response at the time of audit.