FAC Explorer

Finding 1237968 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-09-29
Audit: 412743
Organization: Georgia Association of Conservation Districts, Inc. (GA)
Auditor: RL JENNINGS & ASSOCIATES PC

AI Summary

  • Core Issue: The Association is not maintaining its general ledger on an accrual basis, which is required by GAAP.
  • Impacted Requirements: This failure distorts financial information, potentially leading to poor decision-making based on inaccurate data.
  • Recommended Follow-Up: Implement procedures to maintain records on an accrual basis throughout the year, with adjustments made at year-end.

Finding Text

U.S. Department of Agriculture Natural Resources Conservation Service Soil and Water Conservation Program CFDA 10.902 2025-02: 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 26 in this audit report.

Corrective Action Plan

2025-02: 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

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Other Findings in this Audit

  • 1237959 2025-001
    Material Weakness Repeat
  • 1237960 2025-002
    Material Weakness Repeat
  • 1237961 2025-001
    Material Weakness Repeat
  • 1237962 2025-002
    Material Weakness Repeat
  • 1237963 2025-001
    Material Weakness Repeat
  • 1237964 2025-002
    Material Weakness Repeat
  • 1237965 2025-001
    Material Weakness Repeat
  • 1237966 2025-002
    Material Weakness Repeat
  • 1237967 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.902 SOIL AND WATER CONSERVATION $52,899
10.924 CONSERVATION STEWARDSHIP PROGRAM $45,800
10.912 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $15,801