Finding Text
2023-004 Financial Management
Fiscal year finding initially occurred: 2021
CONDITION: While performing our audit procedures for FY 23, there were numerous instances of revenue and expense transactions being miscoded between federal grant program funds and expenditures being misclassified on the balance sheet. In addition, reconciliations of grant revenues to grant expenditures were not being performed which could lead to over drawing of federal funds.
CRITERIA: 2 CFR 1.200.302(b) Financial Management requires that the financial management system of a non-Federal entity must provide records that identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation.
CAUSE: Reconciliation and review of detailed general ledger account balances were not performed in a timely manner during FY 23.
EFFECT: Inaccurate and incomplete financial statement reports may be submitted to users of the financial statements, as well as grantor agencies.
RECOMMENDATION: All detailed general ledger account balances should be reviewed and reconciled on a monthly basis to ensure complete and accurate financial information is provided to all users of the financial information.