ICFR Assessment
Falcon Creek Manufacturing • Year Ended December 31, 2024
Management's Assessment of Internal Control Over Financial Reporting
ICFR Effective with Noted Deficiency
The Company maintains effective internal control over financial reporting as of December 31, 2024, except for one identified significant deficiency that requires management action.
COSO Framework Assessment
Control Environment
Board oversight adequate. Audit committee active. Tone at top appropriate.
Risk Assessment
Process adequately identifies and assesses material risks. Regular updates.
Control Activities
Revenue & purchases controls designed effectively. Design gap: purchases >$50K lack secondary approval.
Information & Communication
GL system reliable. Reconciliations performed monthly. Procedures documented.
Monitoring Activities
Internal audit function active. Management reviews controls quarterly.
Control Deficiencies
SIGNIFICANT DEFICIENCY
Purchases exceeding $50,000 lack secondary approval before payment
Risk Area
Authorization and Completeness of Transactions
Potential Impact
Unauthorized or erroneous transactions could occur and not be detected
Management's Remediation Plan
Implement dual-approval workflow for purchases > $50K
In Remediation (Target: Q1 2025)
Auditor's Assessment
We evaluated the effectiveness of Falcon Creek's internal control over financial reporting as of December 31, 2024. Based on our audit procedures, we identified one significant deficiency in the design of controls over authorization of significant purchases. This deficiency was considered in our overall assessment of the effectiveness of internal control over financial reporting.
Notwithstanding this deficiency, the Company's internal control over financial reporting is effective as of December 31, 2024, and no material weaknesses in internal control over financial reporting were identified during our audit.