Finding Text
United States Environmental Protection Agency
Passed through Georgia Department of Natural Resources,
Environmental Protection Division
Water Pollution Control State, Interstate, and Tribal Program Support
Federal Assistance Listing Number: 66.419
2023-02: Maintenance of the General Ledger
Criteria: The Organization 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 Organization 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 repeat finding from the immediate previous audit.
Recommendation: We recommend that the Organization 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 Organization agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.