Finding Text
Criteria: Pursuant to US GAAP, expenditures must be recorded in the period for which the expenses are incurred. Condition: The Center received an invoice for 2022 expenditures during the 2023 fiscal period. These expenses were not accrued for as of December 31, 2022. Cause: The independent contractor for which the Center utilized to perform services related to the Promise Neighborhoods did not timely reconcile financial records nor bill the Center timely. Effect: This resulted in reporting $220,695 of the Center's expenditures under the federal award from 2022 in the 2023 Schedule. Questioned Costs: None.
Recommendation: We recommend that management establish a reconciliation process for all substantial grants to be completed within the first couple of months of the following year to identify potential differences and issues. This should include the inquiry of independent contractors and subrecipients as to unbilled services.
Views of Responsible Officials: See attached corrective action plan.