FAC Explorer

Audit 365803

FY End
2024-12-31
Total Expended
$2.87M
Findings
16
Programs
6
Organization: Beacon, Inc. (IN)
Year: 2024 Accepted: 2025-09-08
Auditor: Blue and CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575821 2024-001 Material Weakness Yes FGHIJ
575822 2024-001 Material Weakness Yes FGHIJ
575823 2024-001 Material Weakness Yes FGHIJ
575824 2024-001 Material Weakness Yes FGHIJ
575825 2024-001 Material Weakness Yes FGHIJ
575826 2024-001 Material Weakness Yes FGHIJ
575827 2024-001 Material Weakness Yes ABGHILMN
575828 2024-001 Material Weakness Yes ABGHILMN
1152263 2024-001 Material Weakness Yes FGHIJ
1152264 2024-001 Material Weakness Yes FGHIJ
1152265 2024-001 Material Weakness Yes FGHIJ
1152266 2024-001 Material Weakness Yes FGHIJ
1152267 2024-001 Material Weakness Yes FGHIJ
1152268 2024-001 Material Weakness Yes FGHIJ
1152269 2024-001 Material Weakness Yes ABGHILMN
1152270 2024-001 Material Weakness Yes ABGHILMN

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $500,000 Yes 1
14.231 Emergency Solutions Grant Program $48,640 - 0
93.558 Temporary Assistance for Needy Families $28,425 - 0
14.267 Continuum of Care Program $8,000 Yes 1
14.218 Community Development Block Grants/entitlement Grants $2,251 - 0
93.569 Community Services Block Grant $1,942 - 0

Contacts

Name Title Type
NYQGS4MRE6Z6 Ian Forrest Gilmore Auditee
8123345734 Robert Findley Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule are presented on the modified cash basis of accounting, which is a special purpose framework. Under this method, expenditures are recognized in accordance with the cost principles contained in th eUniform Guidance, which dictate allowability and limitations on reimbursement. Negative amounts shown on the Schedule represent adjustments or credits to expenditures reported in prior years, made in the normal course of business. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis rate. The accompanying schedule of expenditures of federal awards – modified cash basis (the "Schedule") includes the federal award activity of Beacon, Inc. under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Beacon, Inc., it is not intended to, and does not present the financial position and changes in net assets of Beacon, Inc.
Title: Summary of significant accounting policies Accounting Policies: Expenditures reported on the Schedule are presented on the modified cash basis of accounting, which is a special purpose framework. Under this method, expenditures are recognized in accordance with the cost principles contained in th eUniform Guidance, which dictate allowability and limitations on reimbursement. Negative amounts shown on the Schedule represent adjustments or credits to expenditures reported in prior years, made in the normal course of business. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis rate. Expenditures reported on the Schedule are presented on the modified cash basis of accounting, which is a special-purpose framework. Under this method, expenditures are recognized when paid, with certain exceptions for year-end accruals. Expenditures are recognized in accordance with the cost principles contained in the Uniform Guidance, which dictate allowability and limitations on reimbursement. Negative amounts shown on the Schedule represent adjustments or credits to expenditures reported in prior years, made in the normal course of business.
Title: Indirect cost rate Accounting Policies: Expenditures reported on the Schedule are presented on the modified cash basis of accounting, which is a special purpose framework. Under this method, expenditures are recognized in accordance with the cost principles contained in th eUniform Guidance, which dictate allowability and limitations on reimbursement. Negative amounts shown on the Schedule represent adjustments or credits to expenditures reported in prior years, made in the normal course of business. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis rate. Beacon Inc. has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Pass through to subrecipients Accounting Policies: Expenditures reported on the Schedule are presented on the modified cash basis of accounting, which is a special purpose framework. Under this method, expenditures are recognized in accordance with the cost principles contained in th eUniform Guidance, which dictate allowability and limitations on reimbursement. Negative amounts shown on the Schedule represent adjustments or credits to expenditures reported in prior years, made in the normal course of business. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis rate. No entities received pass-through federal awards from Beacon during 2024.

Finding Details

Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
Finding 2024-001
Finding Reference Number: 2024-001 (repeat of 2023-001) – Preparation of Financial Statements Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Effective internal controls are an important component of a system that supports the preparation of external year-end financial statements and related note disclosures, as well as the oversight of the external financial reporting process by those charged with governance. Condition and Context: Beacon, Inc. (“Beacon”) does not currently have in place the processes and controls that would assure the preparation of external year-end financial statements and related note disclosures in accordance with the modified cash basis of accounting. Cause: Preparation of the external financial statements and related note disclosures, with a closing process to identify and correct material misstatements in the financial statements would require the in-house ability to maintain appropriate technical knowledge and to research current and changing accounting standards as well as unique industry considerations. Beacon has not allocated sufficient resources toward developing these capabilities because management believes the cost of doing so outweighs the benefits. Effect: Beacon engages the auditors to draft the year-end external financial statements and to perform the necessary steps to ensure the disclosures are complete. Once drafted, the financial statements are submitted to management for review and approval. While this practice is common and practical, it must be reported as a material weakness in internal control over financial reporting in internal control over financial reporting since the year-end external financial statement preparation cannot be carried out in-house. Recommendation: Beacon, Inc. should review and consider enhancements to the external financial reporting procedures and controls in place to make improvements as they are practical to do so. Responsible Official’s Response: Management concurs with the reported finding. The current economics of the organization does not allow us to correct this weakness. We believe our current accounting capacity is sufficient for routine day-to-day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.