Finding Text
2025-003 - Noncompliance with Special Tests and Provisions compliance requirement Criteria: The Uniform Guidance requires that management of Moore County Development, Inc. (the Organization) to follow compliance requirements for GAAP accounting, including specific requirements for accounting for credit loss provisions. Condition and Context: During our audit, we noted that management of the Organization had not adopted GAAP accounting requirements for credit loss provisions. Cause: Management of the Organization has not adopted GAAP accounting requirements for credit loss provisions. Effect of Potential Effect: The Organization is not following GAAP accounting requirements for credit loss provisions. Recommendation: We recommend management of the Organization evaluate the GAAP requirements for accounting for credit loss provisions. Responsible Official’s Response: Management of the Organization has elected not to adopt GAAP accounting requirements for allowance for credit loss provisions.