Finding Text
Information on the Federal Program: Assistance Living Number 21.027 Criteria: Title 2 CFR 200 Section 200.302 establishes non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During the current year audit, we had difficulty obtaining the correct financial reports from the accounting software. Context: Fry was unable to extract the correct reports or prepare proper reports. These reports include the Schedule of Federal Expenditures (SEFA), program profit and loss statements, and the functional expense statement. Multiple version of all requested financial documents were provided. Cause: Fry's accounting is not set up properly to allow for easy and accurate record keeping. There is also no review and approval of transactions posted to the accounting software. Effect or Potential Effect: We were unable to trace revenue to the proper general ledger account. We could not trace salary allocations to the project. The major program profit and loss did not tie to the SEFA. Question Costs: None Identification of Repeat Finding: 2021-001 Recommendation: Fry should set up project/class codes for each program, fundraising, and general and administrative in the accounting software. We also recommend Fry hires someone with accounting experience in relation to government grants to assist in the setup and to help maintain records throughout the year. Accounts should be reconciled on a monthly basis and have a review and approval process for all accounts.