FAC Explorer

Finding 1155534 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-26
Audit: 367832
Organization: Boys & Girls Clubs, Northwest Georgia, 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: Financial statements must comply with GAAP, which necessitates maintaining records on an accrual basis to ensure accurate data for decision-making.
  • Recommended Follow-Up: Implement procedures to maintain accrual records throughout the year, with adjustments made at year-end to align with GAAP requirements.

Finding Text

Child and Adult Care Food Program Federal Assistant Listing Number 10.558 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: No. 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 37 in this audit report.

Corrective Action Plan

2024-02: Maintenance of the General Ledger Name of contact person: J.R. Davis, Chief Executive Officer 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.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1155525 2024-001
    Material Weakness Repeat
  • 1155526 2024-002
    Material Weakness Repeat
  • 1155527 2024-003
    Material Weakness Repeat
  • 1155528 2024-004
    Material Weakness Repeat
  • 1155529 2024-001
    Material Weakness Repeat
  • 1155530 2024-002
    Material Weakness Repeat
  • 1155531 2024-003
    Material Weakness Repeat
  • 1155532 2024-004
    Material Weakness Repeat
  • 1155533 2024-001
    Material Weakness Repeat
  • 1155535 2024-003
    Material Weakness Repeat
  • 1155536 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $183,151
10.558 Child and Adult Care Food Program $76,728
93.558 Temporary Assistance for Needy Families $58,366
16.726 Juvenile Mentoring Program $1,685