Finding 1147453 (2024-002)

Reconciliation of Grants Receivable Significant deficiency Condition: As a result of our audit procedures, we proposed adjustments to grants receivable, which resulted in a material change in grants receivable and revenue recognized during the period under audit. Criteria: Adequate internal control functions over the financial reporting process. Cause: The Organization changed accounting software during the year and had difficulty reconciling the account between the two software systems. Additionally, there was not an independent review of grants receivable by someone other than the preparer. Effect: Misstatement of the Organization's financial statements will not be prevented, or detected and corrected, on a timely basis. Recommendation: We recommend that the receivable ledger be reconciled to the general ledger on a monthly basis. Any differences should be investigated and resolved as soon as possible, and there should be an independent review of the reconciliation. This practice serves as a check on the accuracy of the record keeping process and maintains the accounts receivable on a more timely and accurate basis. View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.