Finding Text
Criteria: Management is responsible for establishing controls over the reconciliation of gran revenue accounts to allow for proper reporting during the fiscal year. Condition: During the current year, we noted that grant revenue required extensive reconciliation and outside corroboration to ensure financial statements that are reliable. The Organization?s grant revenue accounts required significant audit adjustments to reconcile ending balances to underlying support and schedules. Cause: Audit procedures revealed that there is no systematic method of ensuring that proper accounting for grant revenues are taking place. Effect: Material journal entries were required during the audit to correct recognition of grant revenue. Recommendation: Proper accounting for grant revenue plays a key role in proving the accuracy of the financial information provided to users to make informed business decisions. An understanding of accounting principles related to accounting for gran revenue should be put into place to ensure accurate and timely financial reporting. Views Of Responsible Officials: The management agrees with the finding and has put together a correction action plan for finding. See corrective action plan included in this report.