FAC Explorer

Finding 517671 (2019-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2019
Accepted
2025-01-03
Audit: 335732
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 for its general ledger instead of the required accrual basis, leading to potentially misleading financial information.
  • Impacted Requirements: Annual financial statements must comply with GAAP to ensure accurate reporting and informed decision-making.
  • Recommended Follow-Up: Implement procedures to maintain records on a cash basis throughout the year and make necessary accrual adjustments at year-end.

Finding Text

U.S. Department of Agriculture Natural Resources Conservation Service Environmental Quality Incentive Program, Federal Assistance Listing # 10.912 Soil and Water Conservation Program, Federal Assistance Listing # 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 of fiscal year ending December 31, 2018. 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 31 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

  • 517670 2019-001
    Significant Deficiency Repeat
  • 517672 2019-003
    Significant Deficiency Repeat
  • 517673 2019-004
    Material Weakness Repeat
  • 517674 2019-001
    Significant Deficiency Repeat
  • 517675 2019-002
    Significant Deficiency Repeat
  • 517676 2019-003
    Significant Deficiency Repeat
  • 517677 2019-004
    Material Weakness Repeat
  • 517678 2019-001
    Significant Deficiency Repeat
  • 517679 2019-002
    Significant Deficiency Repeat
  • 517680 2019-003
    Significant Deficiency Repeat
  • 517681 2019-004
    Material Weakness Repeat
  • 517682 2019-001
    Significant Deficiency Repeat
  • 517683 2019-002
    Significant Deficiency Repeat
  • 517684 2019-003
    Significant Deficiency Repeat
  • 517685 2019-004
    Material Weakness Repeat
  • 517686 2019-001
    Significant Deficiency Repeat
  • 517687 2019-002
    Significant Deficiency Repeat
  • 517688 2019-003
    Significant Deficiency Repeat
  • 517689 2019-004
    Material Weakness Repeat
  • 517690 2019-001
    Significant Deficiency Repeat
  • 517691 2019-002
    Significant Deficiency Repeat
  • 517692 2019-003
    Significant Deficiency Repeat
  • 517693 2019-004
    Material Weakness Repeat
  • 517694 2019-001
    Significant Deficiency Repeat
  • 517695 2019-002
    Significant Deficiency Repeat
  • 517696 2019-003
    Significant Deficiency Repeat
  • 517697 2019-004
    Material Weakness Repeat
  • 1094112 2019-001
    Significant Deficiency Repeat
  • 1094113 2019-002
    Significant Deficiency Repeat
  • 1094114 2019-003
    Significant Deficiency Repeat
  • 1094115 2019-004
    Material Weakness Repeat
  • 1094116 2019-001
    Significant Deficiency Repeat
  • 1094117 2019-002
    Significant Deficiency Repeat
  • 1094118 2019-003
    Significant Deficiency Repeat
  • 1094119 2019-004
    Material Weakness Repeat
  • 1094120 2019-001
    Significant Deficiency Repeat
  • 1094121 2019-002
    Significant Deficiency Repeat
  • 1094122 2019-003
    Significant Deficiency Repeat
  • 1094123 2019-004
    Material Weakness Repeat
  • 1094124 2019-001
    Significant Deficiency Repeat
  • 1094125 2019-002
    Significant Deficiency Repeat
  • 1094126 2019-003
    Significant Deficiency Repeat
  • 1094127 2019-004
    Material Weakness Repeat
  • 1094128 2019-001
    Significant Deficiency Repeat
  • 1094129 2019-002
    Significant Deficiency Repeat
  • 1094130 2019-003
    Significant Deficiency Repeat
  • 1094131 2019-004
    Material Weakness Repeat
  • 1094132 2019-001
    Significant Deficiency Repeat
  • 1094133 2019-002
    Significant Deficiency Repeat
  • 1094134 2019-003
    Significant Deficiency Repeat
  • 1094135 2019-004
    Material Weakness Repeat
  • 1094136 2019-001
    Significant Deficiency Repeat
  • 1094137 2019-002
    Significant Deficiency Repeat
  • 1094138 2019-003
    Significant Deficiency Repeat
  • 1094139 2019-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.912 Environmental Quality Incentives Program $1.06M
10.924 Conservation Stewardship Program $150,624
10.902 Soil and Water Conservation $30,000