Finding Text
Condition:
During our testing over major federal program expenditures, we noted a number of expenditures misclassified between
grants which caused material misstatements to the schedule of expenditures of federal awards (the “Schedule”). As a
result, material adjustments were required in order to present the Schedule accurately.
Criteria:
All federal program expenditures should be recorded in a way as to be able to readily determine the amount of
expenditures related to a particular grant in a particular grant year.
Cause:
The are continued, lingering issues from the implementation of the new accounting system for the prior year that are still
being corrected, combined with staff turnover that resulted in a lack of appropriate tracking of grant activity. Effect:
There is the potential that balances related to the grants, including receivables, revenues, and expenses, could be
materially misstated.
Questioned Cost Amount:
None noted.
Repeat Finding:
This is a repeat finding.
Recommendation:
We recommend that a system be implemented to track grant activity and compare grant expenditures to grant revenue
along with a comparison of cash receipts to reimbursement requests. We also recommend that grant activity be reconciled
on a monthly basis and that reconciliations be reviewed by someone other than the preparer and evidence of this review
be documented.
View of Management and Planned Corrective Action:
Recommendations made by auditors will be implemented. See corrective action plan.