Finding Text
2022-001: Accounting capacity (previously reported as 2021-001) Condition Several areas of Beacon, Inc.?s operations require significant accounting time, effort or expertise that Beacon, Inc. has not committed. The same or greater level of capability would be needed to prepare the financial statements. Criteria A complete system of internal control includes the ability to properly recognize all accounting matters on a routine basis. It also includes the ability to prepare a materially complete and correct set of financial statements, including all required disclosure items typically found in the footnotes of the audited financial statements. Cause Adequate efforts have not been devoted to Beacon, Inc.?s accounting processes because management believes that the cost of doing so outweighs the benefits and because these matters can be effectively determined in conjunction with the annual independent audit and other year-end analysis. Effect Errors or incomplete reporting could occur without timely detection. Recommendation Beacon, Inc. should be watchful and cognizant of occasions to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.