Finding Text
2022 ? 001 Non-governmental grants Condition: Non-governmental grants without barriers to recognition are being recorded as a liability instead of as contributions with donor restrictions as required under Generally Accepted Accounting Principles. Criteria: Generally Accepted Accounting Principles require grants with purpose or time restrictions, but with no barriers to recognition, to be recorded as contributions with donor restrictions. Cause: There are no procedures in place to appropriately classify and record grants with purpose or time restrictions, but no barriers to recognition, as contributions with donor restrictions. Effect: Non-governmental grants are being recorded as a liability rather than as support and revenue with donor restrictions. Recommendation: Procedures should be implemented to record grants with purpose or time restrictions as net assets with donor restrictions rather than as liabilities and a net asset rollforward schedule to track such grants should be maintained. Views of Responsible Officials and Planned Corrective Actions: ElderHomes Corporation dba project:HOMES and Subsidiaries agrees with the finding and the recommend procedures have been implemented.