Seward Airport Authority

Finding 2025-1 Financial Statement Preparation Criteria: Good internal control over financial reporting requires entities have personnel in place to produce financial statements, which includes the notes to the financial statements, in accordance with GAAP and other applicable standards. Condition: Though management demonstrates the capability of running a governmental organization, we noted a lack of expertise and knowledge was evident in the area of financial statement preparation in accordance with GAAP and other applicable standards. Additionally, numerous material audit adjustments were brought to management’s attention during the audit. Effect: Without proper personnel, there is an increased risk the financial statements may be materially misstated. Recommendation: We recommend the Authority weigh the cost benefit of providing training to current personnel in the areas of GAAP and financial statement preparation or hiring additional personnel with this expertise. Response: The Board will consider the costs benefit of training provisions or hiring additional personnel. Threat to independence was eliminated or reduced to an acceptable level. Auditor makes no management decisions. Entity records transactions and reconciles accounts. Board provides additional oversight. Board members have experience in corporate and industry. Thus, the financial statements are reviewed and approved by individuals with adequate skills, knowledge, and experience.