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CY 2023 Financial Audit Acceptance
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DESCRIPTION: Request Acceptance of the 2023 Audit conducted by Carr Riggs & Ingram |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Acceptance of the 2023 Audit conducted by Carr Riggs & Ingram.
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ISSUE/BACKGROUND:
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Carr Riggs & Ingram has conducted and completed the financial statement audit for the year ending December 31, 2023, in accordance with generally accepted auditing standards in the United States of America and standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. The financial audit aims to ensure that RTA is accountable for public funds, has adequate controls to remain transparent in its economic activities, and remains compliant with state and federal laws, regulations, and award programs.
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DISCUSSION:
Acceptance of the 2023 Financial Audit is requested from the Board of Commissioners.
Carr Riggs & Ingram conducted an in-depth review of internal control systems, financial statements, and supporting documents. Carr Riggs & Ingram reported two exceptions in the 2023 Statewide Agreed Upon Procedures for missing receipts and appropriate documentation with a stated business purpose for transactions related to credit card/fuel cards and (2) exceptions related to termination pay. The Agency agrees with the recommendations for both and is actively working to resolve these issues. The exceptions were immaterial to the financial statements and therefore, no findings related to these exceptions were issued with the audit report. There were four findings related to the financial statements:
2023-001 and 2023-002- Which are related to our ERP systems implementation that took place during 2023, where staff operated out of two financial systems for the year, causing data reconciliation issues.
2023-003- Regarding Internal Control Over Self-Insurance Case Reserves and Structured Settlements. Noting the need for effective and timely communication between the external attorneys, the TPA for claims and RTA management for cases under litigation and cases under structured settlement agreements.
2023-004- Compliance related finding regarding late submission of the audit report. Which is a statutory requirement when extensions are required.
FINANCIAL IMPACT:
None.
NEXT STEPS:
The Agency agrees with the recommendations for each and has submitted a Corrective Action Plan. The Regional Transit Authority will review policies and procedures and will ensure that the Corrective Action Plan is implemented.
ATTACHMENTS:
1. Board Resolution
2. 2023 Financial Audit Report
3. RTA Statewide Agreement Upon Procedures
4. SAUP Mgmt Response - RTA 2023
Prepared By: Jessica M. Lang
Title: Business Analyst
Reviewed By: Gizelle Johnson-Banks
Title: Chief Financial Officer
12/6/2024
Lona Edwards Hankins Date
Chief Executive Officer