Issued Date
February 21, 2020
Audit Objective
Determine whether District officials properly managed and accounted for Niagara Power Coalition and Native American revenues.
Key Findings
- District officials did not properly account for Niagara Power Coalition revenues; $4.2 million was maintained in the debt service fund although the funds had not been designated to pay debt.
- District officials improperly restricted funds in a debt reserve.
- District officials maintained a capital reserve that was not properly approved.
Key Recommendations
- Account for Niagara Power Coalition revenues in a special revenue fund.
- Investigate the source of funds in the debt reserve and, if appropriate, transfer these funds to a special revenue fund.
- Consult with legal counsel on the appropriate action regarding the future use of the capital reserve.
District officials generally agreed with our findings and recommendations and indicated that they have initiated, or planned to initiate, corrective action.