The Board had informal procedures for its financial reporting that followed the Office of the Comptroller of Public Accounts’ reporting requirements;
however, the Board did not document those procedures. It also did not document the review and approval of its annual financial report to ensure that report
met all requirements and was accurate and complete. As a result, auditors identified inaccuracies in the capital assets and depreciation in the Board’s fiscal
year 2015 annual financial report. Those inaccuracies occurred because the Board did not report asset purchases in the State Property Accounting (SPA) system
for more than six years (reporting that information is necessary for the Board to accurately capture capital assets and depreciation in its annual financial report).
In addition, the Board recorded a $250,000 advance payment for future construction to its facility as an expense under repairs and maintenance in its fiscal year 2015
annual financial report. However, because the Board did not have a work plan and budget that described the work to be performed, it did not have the information necessary
to determine whether it should have (1) expensed that payment or (2) processed that payment as a capital expenditure. After it determines the nature of the work to be
performed, the Board should determine how to record that payment in its accounting records and work with the Office of the Comptroller of Public Accounts to determine
whether it should report the improvements in SPA.
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