Finding Text
2024-001 –GRANT REPORTING RECONCILIATIONS (93.788 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES)
Condition:
For 5 of the 5 grant reports tested, management was unable to provide a reconciliation of key financial data from grant reporting filed with grantors and the underlying accounting records used to prepare the schedule of expenditures of federal awards (the schedule).
Criteria:
To ensure accurate reporting information is provided to grantors, it should be reconciled to the schedule, and the underlying records used to prepare it.
Cause:
The grant reports are prepared on the accrual basis of accounting. The schedule was converted from the cash basis to the accrual basis of accounting in the current year. The conversion of the schedule was completed at the end of the fiscal year and was effective as of the beginning of the fiscal year. Appropriate reconciliation procedures were not designed and implemented to reconcile between the schedule and the grant reporting to demonstrate the accuracy of grant reporting as of June 30, 2024.
Effect:
The Association is at an increased risk for grant reporting errors or omissions.
Questioned Costs:
N/A
Recommendation:
Now that the Association has converted to the accrual basis of accounting, we recommend they enter their data into the accounting system timely each month and utilize the data from the accounting software to prepare grant reports moving forward. Management should reconcile the financial data included in the grant reports to the accounting system prior to submission to the grantor.
Views of Responsible Officials:
Management concurs with the finding and has developed a plan to correct the finding.