Finding Text
2022-002 - Management Review and Approval of Monthly Grant Revenue Reports: Criteria: Generally Accepted Accounting Principals (GAAP) requires that management of PILC to develop internal controls for all of PILC?s operations, including internal controls surrounding the review and approval of monthly grant revenue reports. Condition and Context: During our review of internal controls, we noted that PILC has not implemented sufficient controls surrounding Management?s review and approval of monthly grant revenue reports. Cause: PILC did not maintain adequate Internal Controls to document management preparation and reviews and approvals of monthly grant revenue reports during the year ended September 30, 2022. Effect or Potential Effect: PILC could potentially request federal grant funds and record federal grant revenue which had not previously been incurred for reimbursement and met qualifying grant requirements for recognition. Recommendation: We recommend that PILC implement internal controls for management?s review and approval of monthly grant revenue reports, including an officer of PILC (CFO and/or Chief Operating Officer) review, approve and sign/initial all monthly grant reports prior to submission to enhance internal controls and the ability for auditors and others to review and document the internal control process and its effectiveness. Responsible Official?s Response: PILC has implement internal controls for management?s review and approval of monthly grant revenue reports, including an officer of PILC (CFO and/or Chief Operating Officer) will review, approve and sign/initial all monthly grant reports prior to submission.