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  • Audit Finds Problems With Lakewood Student Transportation Authority

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    Stacey
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    The statute that created the Lakewood Student Transportation Authority in 2016 also required annual audits, the first of which was released in May 2018. The audits raised several issues with the one-of-a-kind consortium's record keeping and spending. (Document 2)

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    Audit finds problems with Lakewood Student Transportation Authority

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    The statute that created the Lakewood Student Transportation Authority in 2016 also required annual audits, the first of which was released in May 2018. The audits raised several issues with the one-of-a-kind consortium's record keeping and spending. (Document 2)

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    © All Rights Reserved
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    12K views6 pages

    Audit Finds Problems With Lakewood Student Transportation Authority

    Uploaded by

    Stacey
    The statute that created the Lakewood Student Transportation Authority in 2016 also required annual audits, the first of which was released in May 2018. The audits raised several issues with the one-of-a-kind consortium's record keeping and spending. (Document 2)

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    Lakewood Student Transportation Authority Lakewood, Now Jorsoy Communication of Internal Control Matters Identified in the ‘Audit to the Consortium Board and Management June 30, 2017 PKE OCONNOR DAVIES ‘Communication of internal Control Matters Identified in the Auait ‘The Members of the Consortium Board and Management Lakewood Student Transportation Authority, Lakewood, New Jorsey In planning and performing our audit of the basic financial statements of the Lakewood Student Transportation ‘Authoriy inthe Township cf Lakewood, New Jersey (Authority) as of and forthe year ended June 30, 2017 in accordance with auditing standards generally accepted in the United States of America, we considered the ‘Authority's intemal corral over financial reporting internal contro’) as a basis for designing audit procedures that are appropriate inthe circumstances forthe purpose of expressing our opinion onthe financial statements, ‘ut not forthe purpose of expressing an opinion on the effectiveness of the Author’ intemal control, ‘Accordingly, we do not express an opinion on the effectiveness ofthe Author's internal conro, (Our consideration of internal control was forthe limited purpose described in the first paragraph and was rat designed to identify all deficiencies in internal contro that might be material weaknesses or significant Geficiencies and therefore material weaknesses or significant deficiencies may exist that were not identifed. However, as discussed below, we identified a deficiency in internal control that we consider to be a material weakness. ‘A defeiency in intemal contro exists when the design or operation of a control does not alow management ‘oremployees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness isa deficiency, or combination of deficiencies, in intemal control, such that there Is a reasonable possioity thet a material misstatement of the entiy’s, financial staterrents will not be prevented, or detected and corrected, on a timely basis, We consider the following deficiencies in internal contol to be material weaknesses. Finding 2017-001: Criteria ~ Sound internal controls require an organization to expend funds within its budgetary Condition — During its fist year ofits operations, the Authority ended the fiscal year with a general {und defct in the amount of $1,900,615. The defict would have been greater, however, the Township of Lakewood approved a contribution of $1,100,000 during its 2017 budget process. This revenue was not anticipated at the time the Authority developed its 2017 budget Effect — The Authority accumulated a deficit during Its fst year of operations in the amount of $31,909,615. ‘The Authority will need to entity new sources of revenue, curtall expenditures and ‘operate more efficiently in order to ullize future financial resources to reduce the accumulated defi, Pe camer Catan, LP arate PY tol ii pl genre oe ae ate (aS rt ature sty aber meter Lakewood Student Transportation Authorlty, New Jersey ‘Addendum & Other Matters During our audit, we became aware of other matters that are opportunites for strengthening internal

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