Finding 627385 (2022-001)

Significant Deficiency
Requirement
ABHILM
Questioned Costs
-
Year
2022
Accepted
2023-10-01

AI Summary

  • Core Issue: The finance team lacks the technical skills needed to accurately prepare financial statements, increasing the risk of misstatements.
  • Impacted Requirements: Financial statements and notes must comply with generally accepted accounting principles (GAAP).
  • Recommended Follow-Up: The Board should hire or train staff with the necessary financial expertise to ensure accurate preparation of financial statements.

Finding Text

2022-001 Preparation of Financial Statements Criteria: The Association has a competent finance staff able to perform day-to-day functions of the financial department but does not have staff with technical ability to prevent, detect, and correct a potential misstatement in the financial statements and notes drafted by the auditor. Condition: There exists a lack of technical expertise to draft or prepare the financial statements and related notes in accordance with generally accepted accounting principles. Effect: The financial statements have the potential of misstatement. Cause: The current staff does not have the necessary training and expertise that is required to prepare the financial statements. Recommendation: The Board should obtain the financial expertise necessary to oversee the preparation of the financial statements. Current Status: The Association has a small staff and relies on the auditor to prepare the financial statements with required disclosures. There were no findings relating to the financial statements required to be reported in accordance with generally accepted government auditing standards.

Categories

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Other Findings in this Audit

  • 50943 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.175 Farmers Market and Local Food Promotion Program (b) $255,664
10.902 Soil and Water Conservation $27,701
21.027 Coronavirus State and Local Fiscal Recovery Funds $26,016
10.147 Outreach Education and Technical Assistance $20,784
93.103 Food and Drug Administration_research $17,955
10.170 Specialty Crop Block Grant Program - Farm Bill $13,636
10.310 Agriculture and Food Research Initiative (afri) $10,057
10.215 Sustainable Agriculture Research and Education $7,214
10.328 National Food Safety Training, Education, Extension, Outreach, and Technical Assistance Competitive Grants Program $3,797
10.500 Cooperative Extension Service $2,154