FAC Explorer

Finding 528314 (2023-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-03-17
Audit: 346370
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: This practice violates GAAP, risking misleading financial information that could affect critical decision-making.
  • Recommended Follow-Up: Implement procedures to maintain records on an accrual basis throughout the year, with adjustments made at year-end to ensure accurate financial statements.

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 29 in this audit report.

Corrective Action Plan

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

  • 528313 2023-001
    Significant Deficiency Repeat
  • 528315 2023-003
    Material Weakness Repeat
  • 528316 2023-001
    Significant Deficiency Repeat
  • 528317 2023-002
    Significant Deficiency Repeat
  • 528318 2023-003
    Material Weakness Repeat
  • 528319 2023-001
    Significant Deficiency Repeat
  • 528320 2023-002
    Significant Deficiency Repeat
  • 528321 2023-003
    Material Weakness Repeat
  • 528322 2023-001
    Significant Deficiency Repeat
  • 528323 2023-002
    Significant Deficiency Repeat
  • 528324 2023-003
    Material Weakness Repeat
  • 528325 2023-001
    Significant Deficiency Repeat
  • 528326 2023-002
    Significant Deficiency Repeat
  • 528327 2023-003
    Material Weakness Repeat
  • 528328 2023-001
    Significant Deficiency Repeat
  • 528329 2023-002
    Significant Deficiency Repeat
  • 528330 2023-003
    Material Weakness Repeat
  • 1104755 2023-001
    Significant Deficiency Repeat
  • 1104756 2023-002
    Significant Deficiency Repeat
  • 1104757 2023-003
    Material Weakness Repeat
  • 1104758 2023-001
    Significant Deficiency Repeat
  • 1104759 2023-002
    Significant Deficiency Repeat
  • 1104760 2023-003
    Material Weakness Repeat
  • 1104761 2023-001
    Significant Deficiency Repeat
  • 1104762 2023-002
    Significant Deficiency Repeat
  • 1104763 2023-003
    Material Weakness Repeat
  • 1104764 2023-001
    Significant Deficiency Repeat
  • 1104765 2023-002
    Significant Deficiency Repeat
  • 1104766 2023-003
    Material Weakness Repeat
  • 1104767 2023-001
    Significant Deficiency Repeat
  • 1104768 2023-002
    Significant Deficiency Repeat
  • 1104769 2023-003
    Material Weakness Repeat
  • 1104770 2023-001
    Significant Deficiency Repeat
  • 1104771 2023-002
    Significant Deficiency Repeat
  • 1104772 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.924 Conservation Stewardship Program $44,655
10.912 Environmental Quality Incentives Program $40,000
10.902 Soil and Water Conservation $30,915