Finding Text
Restricted Grants and Contributions
Material Weakness
Condition: There is a lack of internal controls related to tracking of donor restrictions. Specifically, there was no formal process to track and manage restricted contributions with donor-imposed restrictions.
Criteria: Adequate internal control functions over the financial reporting process.
Cause: Oversight by management.
Effect: Risk of non-compliance with accounting standards and the potential of misuse of donor funds.
Recommendation: We recommend the Organization establish an internal process to accurately track, monitor and report donor restrictions to ensure compliance with accounting principles and transparency in financial reporting.
View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.