Significant Deficiency Clause Samples
A Significant Deficiency clause defines what constitutes a major weakness or shortcoming in a company's internal controls over financial reporting. In practice, this clause typically outlines the criteria or thresholds for identifying such deficiencies, such as failures that could lead to material misstatements in financial statements or recurring errors in accounting processes. Its core function is to ensure that both parties recognize and address serious control issues promptly, thereby reducing the risk of financial inaccuracies and supporting regulatory compliance.
Significant Deficiency. A clearly definable hazard or a clearly definable potential for failure or is unsafe or not functioning. A state in which a system or component cannot be operated by normal operating controls.
Significant Deficiency. A significant deficiency is one that creates a signifi- cant risk of loss to the Government, or involves acceptance of a borrower or property not permitted by Agency reg- ulations. Such cases may result in pro- bation or withdrawal of the Lender’s approval for program participation. Examples of significant deficiencies in- ▇▇▇▇▇ ▇▇▇▇▇ miscalculation of income, acceptance of property that is severely deficient of the required standards, missing builder certifications, and con- struction changes that materially af- fect value without proper change or- ders.
Significant Deficiency. The Facilitator of a Circle shall have the Accountability for auditing a Sub-Circle’s meetings and records as-needed, as specified in Section 6.4.1(d), except that if such Facilitator is also the Lead Link or Facilitator of the Sub-Circle, then such Accountability, with regard to that specific Sub-Circle, shall instead be placed on the Rep Link of the Circle, or, if such Rep Link is also the Lead Link or Facilitator of the Sub-Circle, then to the Secretary of the Circle, or, if such Secretary is also the Lead Link or Facilitator of the Sub- Circle, then to the longest-term Circle Member of the Circle who is not also the Lead Link or Facilitator of the Sub-Circle nor the Lead Link of the Circle. If such Person with such Accountability determines that a Sub-Circle so audited evidences behavior conflicting with the processes and rules described in this Agreement (a “Significant Deficiency”), such Person shall declare such to his or her fellow Circle Members, and such declaration shall trigger the restoration process described in Section 8.8.1.