Finding 34039 (2022-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2023-03-27

Audit: 28616

Organization: Bay Minette Rotary Village, Inc. (AL)

Auditor: Lecroy Richardson PC

AI Summary

Answer: Financial statements may not be accurately presented due to material adjustments made to the general ledger.
Trend: The entity's lack of training in accounting principles is leading to potential inaccuracies in financial reporting.
List: Recommend providing training for staff on generally accepted accounting principles to improve ledger accuracy.

Finding Text

2022-001 Fair Presentation of Financial Statements Criteria: Management is responsible for performing adjustments to the general ledger in order to be in conformity with generally accepted accounting principles. Condition: Material adjusting entries were prepared to ensure the financial statements were presented fairly. Cause: The Entity lacks the training to apply generally accepted accounting principles in recording the transactions to the general ledger. Effect: The possibility exists that the general ledger does not reflect generally accepted accounting principles.

Corrective Action Plan

Finding 2022-001 Fair Presentation of Financial Statements Recommendation: The Organization should properly adjust fixed asset accounts and payables before preparing unaudited financial statements for submission to REAC. Action Taken: We concur with the recommendation and it will be implemented through discussions with personnel in preparation for closing out the year ended December 31, 2023.

Other Findings in this Audit

610481 2022-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.182	Section 8 New Construction and Substantial Rehabilitation	$2.37M
14.157	Supportive Housing for the Elderly	$56,549