Finding Text
Criteria: All requests for reimbursements (RFRs) should be supported by expenditures in the general
ledger.
Condition: Auditors were unable to reconcile grant RFR totals to the grant general ledger. In total, expenses
per the grant RFRs were less than expenses per the grant general ledger.
Cause: The Organization experienced turnover in accounting management at the end of 2020 and
throughout 2021. At that time, the interim management did not have the background with the grant RFR
submitted necessary to reconcile to the grant general ledger. Further, the interim management did not and
would not have had time to implement the corrective action plan as the prior audit was completed in
September 2022.
Effect: The Organization’s controls over the grant RFR process were not sufficiently implemented to avoid
the risk of noncompliance related to proper recordkeeping for reporting documentation.
Questioned costs: None
Recommendation: The Organization should maintain documentation of all allowable costs included on
the grant RFRs in the grant general ledger.