FAC Explorer

Finding 1237958 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-09-29
Audit: 412741
Organization: Georgia Association of Conservation Districts, Inc. (GA)
Auditor: RL JENNINGS & ASSOCIATES PC

AI Summary

  • Core Issue: The Association is using a modified accrual basis instead of the required accrual basis for its general ledger, leading to potential inaccuracies in financial reporting.
  • Impacted Requirements: Annual financial statements must comply with GAAP, which requires maintaining records on an accrual basis to ensure accurate financial information.
  • Recommended Follow-Up: Implement procedures to maintain records on a cash basis throughout the year, with accrual adjustments made at year-end to ensure compliance.

Finding Text

U.S. Department of Agriculture Natural Resources Conservation Service Soil and Water Conservation Program CFDA 10.902 2020-02: Maintenance of the General Ledger Criteria: The Association 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 Association currently maintains its general ledger on the modified accrual 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 a repeat finding from the immediate previous audit. Recommendation: We recommend that the Association 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 Association agrees with this finding and will adhere to the corrective action plan on page 27 in this audit report.

Corrective Action Plan

2020-02: Maintenance of the General Ledger Name of contact person: Katie Sponberger, Executive Director Corrective Action: The books and records of the Association will continue to be kept on a modified accrual 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

  • 1237949 2024-001
    Material Weakness Repeat
  • 1237950 2024-002
    Material Weakness Repeat
  • 1237951 2024-001
    Material Weakness Repeat
  • 1237952 2024-002
    Material Weakness Repeat
  • 1237953 2024-001
    Material Weakness Repeat
  • 1237954 2024-002
    Material Weakness Repeat
  • 1237955 2024-001
    Material Weakness Repeat
  • 1237956 2024-002
    Material Weakness Repeat
  • 1237957 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.912 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $95,584
10.902 SOIL AND WATER CONSERVATION $52,899
10.924 CONSERVATION STEWARDSHIP PROGRAM $45,800