RNR Consulting was contracted by the Antelope Valley Transit Authority (AVTA) in November of 2006 to assist with Financial Management activities in preparation of the audit for the current fiscal year. Throughout this four-month engagement, RNR Consulting was responsible for assisting the financial management team with the agency’s fixed asset depreciation schedules and federal awards funding allocation schedules, along with the analysis of AVTA’s financial statements.

As a preliminary measure, RNR Consulting obtained the audit results from the prior fiscal year to determine what corrective action measures would be needed to establish audit improvements. As a starting point, RNR Consulting obtained and analyzed the funding allocation schedules on each of AVTA’s federal awards. From our analysis, RNR Consulting was able to determine what supporting documentation was missing from each schedule and what restructuring was required based upon the audit findings. 

For the fixed assets component of Financial Management, RNR Consulting obtained and analyzed the comprehensive fixed asset depreciation schedule for AVTA’s capital assets. To ensure that all assets for the current fiscal year were accurately represented in the schedule, RNR Consulting conducted a sweep of all assets purchased during the previous and current fiscal years by auditing the accounts payable data and making additions to the fixed assets schedule accordingly. For the financial statement analysis component, RNR Consulting conducted a detailed audit of all general ledger journal entries for all revenue and expenditures from the previous fiscal year to ensure the establishment of an accurate trial balance going forward. In addition to these corrective action activities, RNR Consulting also assisted AVTA with the reformatting and importation of all financial data into the agency’s ERP financial management system. 

Through the commencement of the Financial Management initiative, RNR Consulting has not only provided a value-added service that has proven to be cost effective to AVTA, but has also prepared the agency for the upcoming single audit for the current fiscal year and ensured that all corrective action and regulatory compliance measures have been satisfied.