PLATEAU UTILITY DISTRICTLocal Government

Criteria: OMB Guidance (2 CFR Part 200) requires that the accounting records follow generally accepted accounting principles. Condition: The client did not initially prepare the SEFA using full accrual methods. As a result, all of the entity’s grant related receivables and payables were not recorded at year end. Cause: There was a delay from the administrating entity in releasing funds and clearly defining what accounting period certain invoices were to be recorded. Effect: The entity’s accounts receivable and accounts payable were understated at year end. Through guidance from the third-party CPA, the District made the necessary correction to properly record the grant receivables and payables. Recommendation: In the future, all grant related receivables and payables should be recorded in the correct accounting period. The entity should consider consulting with the granting agency and others, etc. to ensure property accounting for grant funds in the correct period. Management Response: The district has enlisted the help of a third party CPA who has the knowledge and expertise to properly report and record the receivables and payables of the district.