Finding Text
Condition: Based on the prior audit report (2017) and discussion with the District, an adjusting journal
entry was made to correctly record Grants Receivable in the June 30, 2017, audit report. Grants Receivable
were adjusted and recorded at $133,155 for the fiscal year ended June 30, 2017. This balance remained
on the District’s financial statements, resulting in an overstatement of Grants Receivable.
Criteria: Correctly and accurately recording journal entries into the General Ledger.
Effect: The District Grants Receivable account does not reconcile with any documentation provided.
Cause: Management failed to correctly record the account balance for Grants Receivables
Recommendations: We recommend at year-end, the Board and bookkeeper review and reconcile the
financial information pertaining to grants receivable to ensure clerical accuracy.
Auditee Response: At each year-end the Board will schedule a review with the bookkeeper to reconcile
financial information pertaining to grants receivable to ensure clerical accuracy.