Finding 1237517 (2025-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-09-28

Audit: 412460

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 potential inaccuracies in financial reporting.
Impacted Requirements: This practice violates GAAP, risking misleading financial information that could affect critical decision-making.
Recommended Follow-Up: Implement procedures to maintain accrual records throughout the year, with adjustments made at year-end to ensure compliance.

Finding Text

United States Department of the Treasury Federal Assistance Listing Number 21.027 2025-02: 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 35 in this audit report.

Corrective Action Plan

2025-02: 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

1237512 2025-001

Material Weakness Repeat
1237513 2025-002

Material Weakness Repeat
1237514 2025-003

Material Weakness Repeat
1237515 2025-004

Material Weakness Repeat
1237516 2025-001

Material Weakness Repeat
1237518 2025-003

Material Weakness Repeat
1237519 2025-004

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
15.608	FISH AND AQUATIC CONSERVATION - AQUATIC INVASIVE SPECIES	$492,455
10.443	OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED AND VETERAN FARMERS AND RANCHERS	$240,759
17.289	COMMUNITY PROJECT FUNDING/CONGRESSIONALLY DIRECTED SPENDING	$192,666
10.862	RURAL DECENTRALIZED WATER SYSTEMS GRANT PROGRAM	$163,229
10.912	ENVIRONMENTAL QUALITY INCENTIVES PROGRAM	$141,620
15.657	ENDANGERED SPECIES RECOVERY IMPLEMENTATION	$132,143
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$113,882
15.631	PARTNERS FOR FISH AND WILDLIFE	$54,863
10.446	RURAL COMMUNITY DEVELOPMENT INITIATIVE	$30,000
66.419	WATER POLLUTION CONTROL STATE, INTERSTATE, AND TRIBAL PROGRAM SUPPORT	$25,687
10.868	RURAL ENERGY FOR AMERICA PROGRAM	$21,156
10.902	SOIL AND WATER CONSERVATION	$12,904
66.460	NONPOINT SOURCE IMPLEMENTATION GRANTS	$8,326