Financial Audits

CUC 2014 and 2013 Financial Audit



(The following summary is based on the independent auditor’s report prepared by Burger, Comer, Magliari and does not constitute an audit report.  Please visit OPA’s website for the full audit report.)

The Commonwealth Utilities Corporation (CUC) received an unmodified opinion on its financial statements from an independent auditor (Auditor) Fiscal Years (FY) 2014 and 2013.  This means that the financial statements for these fiscal years present fairly the financial position and changes in net position and cash flow of CUC.  However, CUC has suffered recurring operating losses, negative cash flows, and working capital deficiencies which raise substantial doubt about its ability to continue as a going concern.  This means that CUC may not have the resources to continue operating in the foreseeable future.  The Auditor also identified material weaknesses, significant deficiencies, and noncompliance in internal control over financial reporting that may result in misstatements of the financial information.

CUC received an unmodified opinion on compliance for its major federal programs with no identified material weaknesses or significant deficiencies.

Audit Findings

Audit findings occur when an auditor discovers deficiencies in internal control; noncompliance with provisions of laws, regulations, contracts, or grant agreements; fraud; or abuse.  The Auditor cited CUC for 10 findings in FY 2014 which is a decrease from 12 findings in FY 2013. However, eight of the 10 findings in FY 2014 were repeat findings from previous years.  This means that CUC failed to implement the actions that would have corrected the cause of the findings.

Questioned Costs

A questioned cost is an expenditure that is questioned by the auditor and is the result of an audit finding:

  1. Which resulted from a violation or possible violation of a specific requirement;
  2. Where the costs, at the time of the audit, are not supported by adequate documentation; or
  3. When the expenditure of funds for the intended purpose is unnecessary or unreasonable.

Unresolved questioned cost may result in the grantor agency requiring reimbursement of the full amount of the questioned costs.  There were no questioned costs related to FY 2014 audit findings, no previously reported questioned costs, and no unresolved questioned costs at September 30, 2014.

Independent Auditors' Report and Financial Statements, and Independent Auditors' Report on Internal Control and Compliance- View



Last Updated 10/9/2015 2:51:01 PM