Finding Text
Finding #2024-002: Inadequate internal controls for Alamo Corporate Type of Finding: Material Weakness in Internal Controls over Financial Reporting Condition: The Company does not have effective internal control policies and procedures or sufficiently trained or experienced personnel in order to ensure the consolidated statements are accurate and complete and prepared in accordance with generally accepted accounting principles, Government Auditing Standards and the Uniform Guidance. Criteria: Effective internal controls over financial reporting, proper segregation of duties and trained and experienced personnel are essential to ensure the financial statements are prepared accurately and completely. Questioned Costs: Unknown Effect: The monthly consolidated financial statements are misleading and incomplete and not prepared in accordance with Generally Accepted Accounting Principles. Cause: The Company does not have an adequate internal control system in place to properly monitor and review the financial reporting process. Repeat Finding: Yes Recommendation: We recommend Alamo implement new policies and internal control procedures to ensure the consolidated financial statements are free from material errors or misstatements and presented accurately and completely and in accordance with GAAP, Management’s Comment: Management is in agreement with finding. Auditor’s Comment: Alamo has hired consultants to help improve controls over financial reporting. Alamo currently has a Memorandum of Understanding with a non-profit corporation for a potential acquisition or merger who will provide expertise and guidance to improve controls and implement adequate policies and procedures.