During the audit, there were several errors which would be expected to have been discovered during the financial close process or review of the financial reports. Adjustments were needed to correct improperly expensed fixed assets and correct depreciation expense, correct rent and other expenses and prepaid expenses, correct payroll and other benefits expenses and accruals, and correct government grants revenue and the related refundable advance balances. As a result, net adjustments were recorded which decreased property and equipment by approximately $7,000,000, increased accounts payable and accrued expenses by approximately $2,100,000, decreased refundable advances by $25,300,000, and increased government grant revenue and various expenses by approximately $25,300,000. There were also adjustments to correct the classification of various expenses and liabilities.
Finding 2023-001 is also a finding for the major federal award program audit as it impacted the expenses charged to the federal award above. Prior to the adjustments to correct the balances, the expenses reported on the Schedule of Expenditures of Federal Awardsa for ALN 90.500 were understated by approximately $24,673,000. This is a repeat of finding 2022-004.
The Data Collection Form for the year ended September 30, 2023, was not submitted to the Federal Audit Clearinghouse by the June 30, 2024 deadline.
Property and equipment: The Organization failed to notify USAGM regarding approximately $7,112,000 of property and equipment disposals. Procurement: The Organization failed to notify USAGM prior to entering into contract with value of $695,161.
During the audit, there were several errors which would be expected to have been discovered during the financial close process or review of the financial reports. Adjustments were needed to correct improperly expensed fixed assets and correct depreciation expense, correct rent and other expenses and prepaid expenses, correct payroll and other benefits expenses and accruals, and correct government grants revenue and the related refundable advance balances. As a result, net adjustments were recorded which decreased property and equipment by approximately $7,000,000, increased accounts payable and accrued expenses by approximately $2,100,000, decreased refundable advances by $25,300,000, and increased government grant revenue and various expenses by approximately $25,300,000. There were also adjustments to correct the classification of various expenses and liabilities.
Finding 2023-001 is also a finding for the major federal award program audit as it impacted the expenses charged to the federal award above. Prior to the adjustments to correct the balances, the expenses reported on the Schedule of Expenditures of Federal Awardsa for ALN 90.500 were understated by approximately $24,673,000. This is a repeat of finding 2022-004.
The Data Collection Form for the year ended September 30, 2023, was not submitted to the Federal Audit Clearinghouse by the June 30, 2024 deadline.
Property and equipment: The Organization failed to notify USAGM regarding approximately $7,112,000 of property and equipment disposals. Procurement: The Organization failed to notify USAGM prior to entering into contract with value of $695,161.