FAC Explorer

Finding 50570 (2022-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-10-01
Audit: 52766
Organization: Georgia Association of Conservation Districts, Inc. (GA)
Auditor: Rl Jennings & Associates

AI Summary

  • Core Issue: The Association is not maintaining its general ledger on an accrual basis, leading to potentially misleading financial information.
  • Impacted Requirements: Annual financial statements must comply with GAAP, which requires accurate accrual accounting to inform critical financial decisions.
  • Recommended Follow-Up: Implement procedures to maintain cash basis records throughout the year and make necessary accrual adjustments at year-end.

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 30 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

  • 50569 2022-001
    Significant Deficiency Repeat
  • 50571 2022-003
    Significant Deficiency Repeat
  • 50572 2022-004
    Material Weakness Repeat
  • 50573 2022-001
    Significant Deficiency Repeat
  • 50574 2022-002
    Significant Deficiency Repeat
  • 50575 2022-003
    Significant Deficiency Repeat
  • 50576 2022-004
    Material Weakness Repeat
  • 50577 2022-001
    Significant Deficiency Repeat
  • 50578 2022-002
    Significant Deficiency Repeat
  • 50579 2022-003
    Significant Deficiency Repeat
  • 50580 2022-004
    Material Weakness Repeat
  • 50581 2022-001
    Significant Deficiency Repeat
  • 50582 2022-002
    Significant Deficiency Repeat
  • 50583 2022-003
    Significant Deficiency Repeat
  • 50584 2022-004
    Material Weakness Repeat
  • 627011 2022-001
    Significant Deficiency Repeat
  • 627012 2022-002
    Significant Deficiency Repeat
  • 627013 2022-003
    Significant Deficiency Repeat
  • 627014 2022-004
    Material Weakness Repeat
  • 627015 2022-001
    Significant Deficiency Repeat
  • 627016 2022-002
    Significant Deficiency Repeat
  • 627017 2022-003
    Significant Deficiency Repeat
  • 627018 2022-004
    Material Weakness Repeat
  • 627019 2022-001
    Significant Deficiency Repeat
  • 627020 2022-002
    Significant Deficiency Repeat
  • 627021 2022-003
    Significant Deficiency Repeat
  • 627022 2022-004
    Material Weakness Repeat
  • 627023 2022-001
    Significant Deficiency Repeat
  • 627024 2022-002
    Significant Deficiency Repeat
  • 627025 2022-003
    Significant Deficiency Repeat
  • 627026 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.902 Soil and Water Conservation $118,519
10.912 Environmental Quality Incentives Program $69,620