Finding Text
Criteria: OMB Guidance (2CFR Part 200) requires that the accounting records follow generally accepted accounting principles which require accrual accounting. Condition: The organization did not initially prepare the SEFA using the full accrual method of accounting. Cause: The design of internal control did not properly allow for changes in grant amount received and awarded. Effect: The improperly designed internal control caused grant award changes to not be recognized in accordance with proper accounting principles and the overall revenue of the organization to be understated. Recommendation: It is our recommendation that the VP of Finance and the President of the organization review the internal control process to ensure that updated grant awards and all applicable invoices sent to the organization are documented and recorded in the general ledger on a monthly basis. Response: VP of Finance and President will review the internal control structure to allow needed adjustments