Finding 1152989 (2024-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2025-09-15

Audit: 366288

Organization: Golden Triangle Resource Conservation and Development Area INC (GA)

Auditor: Rl Jennings & Associates PC

AI Summary

Core Issue: The Organization is using a cash basis for its general ledger instead of the required accrual basis, leading to inaccurate financial reporting.
Impacted Requirements: This violates GAAP standards, risking misleading financial information that could affect decision-making.
Recommended Follow-Up: Implement procedures to maintain accrual records throughout the year, with adjustments made at year-end, as agreed upon in the corrective action plan.

Finding Text

United States Department of the Treasury Federal Assistance Listing Number 21.027 2024-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: This is repeat finding from the immediate previous audit. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 36 in this audit report.

Corrective Action Plan

2024-02: Maintenance of the General Ledger Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: The books and records of the Organization will continue to be kept on a cash basis throughout the year, with accruals for any receivables and payables, and any other accruals be made at year end to ensure accurate reporting. Proposed completion date: The Board will implement the above procedure immediately.

Other Findings in this Audit

1152980 2024-001

Material Weakness Repeat
1152981 2024-002

Material Weakness Repeat
1152982 2024-003

Material Weakness Repeat
1152983 2024-004

Material Weakness Repeat
1152984 2024-001

Material Weakness Repeat
1152985 2024-002

Material Weakness Repeat
1152986 2024-003

Material Weakness Repeat
1152987 2024-004

Material Weakness Repeat
1152988 2024-001

Material Weakness Repeat
1152990 2024-003

Material Weakness Repeat
1152991 2024-004

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
15.631	Partners for Fish and Wildlife	$698,738
17.289	Community Project Funding/congressionally Directed Spending	$606,427
10.862	Rural Decentralized Water Systems Grant Program	$70,556
10.868	Rural Energy for America Program	$53,777
10.443	Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers	$52,334
21.027	Coronavirus State and Local Fiscal Recovery Funds	$48,815
15.608	Fish and Aquatic Conservation - Aquatic Invasive Species	$45,450
10.912	Environmental Quality Incentives Program	$42,614
10.902	Soil and Water Conservation	$42,316
66.419	Water Pollution Control State, Interstate, and Tribal Program Support	$41,839
66.460	Nonpoint Source Implementation Grants	$39,605
10.446	Rural Community Development Initiative	$30,000
15.657	Endangered Species Recovery Implementation	$24,576
15.630	Coastal	$2,500