Audit of Alaska Power Administration for Fiscal Years 1974 and 1975

Financial statements including accounting records and procedures of the Alaska Power Administration (APA) were reviewed for fiscal years 1974 and 1975.

The financial procedures and controls were generally satisfactory, but some weaknesses were found in internal control and in accounting procedures. Internal control weaknesses were found in power billings, property purchases, and payroll. The power-meter readings record was not initialed by the employee who recorded the readings. Procurement and receiving duties, performed by one person, could reasonably be separated. Time and attendance cost codes were not recorded for all studies. Adequate inventory control did not exist at the time of review for Snettisham and other APA property. Overhead costs for Snettisham and Eklutna projects were based on budgetary estimates and not actual charges, resulting in understated overhead charges in 1976 and prior years. Payroll cost codes were not always established on time. For calculating the Snettisham project's electric plant depreciation expense, a composite life must be determined and adjustments made to 1976 depreciation expenses. Various material changes were required to each project's financial statements.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: No director on record Team: No team on record Phone: No phone on record