Finding Text
Condition: The accounting staff tracks restricted net asset activity in the accounting system based on activity within the restricted money market account. However, a process that ensures all restricted activity is captured and reported utilizing a roll forward schedule from the beginning to the end of the accounting period has not been established, causing multiple adjustments and revisions to the net asset schedule. Criteria: Internal controls should be in place that provide reasonable assurance that the financial statements are free of material misstatements. Cause: Due to growth of the Organization over the last several years, restricted net assets have increased and a better tracking system is needed to capture increased activity. Effect: Restricted net assets may be over or understated at year end. Recommendation: Management should enhance the process for tracking restricted net assets, ensuring that all restricted activity is captured and reported utilizing a roll forward schedule from the beginning to the end of the accounting period. Views of Responsible Officials and Planned Corrective Actions: The Global Orphan Project, Inc. and Subsidiaries agrees with the finding and the auditor's recommendations have been adopted.