Answer: There is a significant weakness in how we manage the timing of revenue recognition from specific grant contracts.
Trend: This issue could lead to ongoing inaccuracies in financial reporting if not addressed promptly.
List: Follow up by reviewing current revenue recognition processes, training staff on compliance, and implementing stronger controls.
Finding Text
Significant deficiency in internal controls regarding the curoff of revenue from certain grant contracts
Corrective Action Plan
Management will review contracts at year end and record appropriate corresponding revenue for cost reimbursement contracts to ensure it is recorded properly.
Categories
Significant DeficiencyInternal Control / Segregation of Duties