Finding Text
Criteria: Generally accepted accounting principles prohibit recording revenue for grant funds that have not yet been earned. Condition: The Organization recorded within grant revenue and accounts receivable, grant funds that had notyet been earned in accordance with the grant terms.Effect: The adjustment to accounts receivable had the effect of decreasing grants receivable by $195,245 and decreasing grant revenue by $195,245. Cause: The improper recording of accounts receivable was identified during audit procedures conducted over revenue recognition for the major programs.Recommendation: The Organization should review all grant agreements related to grant payments receivedand based upon the terms of the agreement determine if recording a receivable is appropriate.Views of Responsible Officials: We agree with finding and will follow prescribed recommendation.