Finding Text
Condition: During our audit, a material adjustment was needed to adjust accounts to correct balances at year end. Significant
accounts affected include grants receivable and federal revenue accounts.
Management should have procedures in place to identify misstatements in the financial statements.
As a result of the processes and procedures in place, the financials were not being properly updated for grants receivable
and federal revenue accounts.
Accounts were materially misstated. The audit firm noted the misstatement and presented an adjusting journal entry to
correct the misstatement during the audit.
We recommend the Organization review and update its year-end processes to ensure all accounts are current at year end.
Management agrees with the finding.