Audit 395834

FY End

2025-06-30

Total Expended

$4.62M

Findings

Programs

Organization: Spencer Mountain Road Volunteer Fire Department (NC)

Year: 2025 Accepted: 2026-03-30

Auditor: FOARD AND COMPANY PA

Organization Exclusion Status:

Checking exclusion status...

Findings

ID	Ref	Severity	Repeat	Requirement
1201126	2025-001	Material Weakness	Yes	ABHN
1201127	2025-002	Material Weakness	Yes	ABHN
1201128	2025-003	Material Weakness	Yes	ABHN

Programs

ALN	Program	Spent	Major	Findings
10.766	COMMUNITY FACILITIES LOANS AND GRANTS	$4.62M	Yes	3

Contacts

Name	Title	Type
Z5N4AGBZCMA3	Amber Beatty	Auditee
7049224747	Josh Kleveland	Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Spencer Mountain Road Volunteer Fire Department (the “Organization”) for the year ended June 30, 2025. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Of the federal awards presented in the Schedule, the Organization did not provide federal awards to any sub-recipients.

Finding Details

Finding 2025-001

Criteria: Bank reconciliations are important to the Organization’s internal control and are used to ensure all cash transactions are recorded and to help identify errors. Condition: Bank reconciliations were not performed for any of the Organization’s bank accounts during the year ended June 30, 2025. Cause: The Organization did not allocate adequate resources of qualified accounting personnel to the task of completing and reconciling bank accounts of the Organization to its QuickBooks financial records. Effect: The auditors identified several misstatements in the initial financial records, which necessitated adjusting journal entries to ensure the accuracy of the financial statements. Recommendation: Additional resources should be allocated to accounting so that the bank reconciliations are completed for all accounts every month in a timely manner.

Finding 2025-002

Criteria: An organization’s accounting duties should be adequately segregated among personnel. Condition: The Organization relies on a volunteer Treasurer who is solely responsible for many functions within the financial system. Cause: The Organization utilizes a volunteer Treasurer, and no additional documented oversight or review from the Board of Directors was performed. Effect: The auditors identified material misstatements in the initial financial records, which necessitated adjusting journal entries to ensure the accuracy of the financial statements. Recommendation: The Organization should implement proper monitoring and oversight regarding the review of bank statements, reconciliations, cancelled check images, and other direct charges to bank accounts, review of payroll registers, review of monthly financial statements, and review of monthly general ledger activity.

Finding 2025-003

Criteria: An organization’s financial statements should be fairly stated in all material respects. Condition: The Organization’s initial financial statements had various material errors. Cause: The Organization did not allocate adequate resources of qualified accounting personnel to the task of maintaining the accounting records of the Organization. Effect: The auditors identified material misstatements in the initial financial records, which necessitated adjusting journal entries to ensure the accuracy of the financial statements. Recommendation: Additional resources should be allocated to accounting so that the financial statements are materially correct and help ensure financial accuracy. These steps should include but not be limited to hiring staff or engaging independent accountants with sufficient financial expertise to maintain financial records, and also ensure monthly statements of loan activity are received from South State Bank to ensure proper reporting of principal and interest paid on the Organization’s outstanding loan.