Finding Text
2023-001 –GRANT REPORTING RECONCILIATIONS (93.788 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES)
Condition:
For 6 of the 6 grant reports tested, management was unable to provide a reconciliation of key financial data from grant reporting filed with grantors and the underlying accounting records used to prepare the schedule of expenditures of federal awards.
Criteria:
To ensure accurate reporting information is provided to grantors, it should be reconciled to the schedule of expenditures of federal awards, and the underlying records used to prepare it.
Cause:
The grant reports are prepared on a different basis of accounting (accrual) than the schedule of expenditures of federal awards (cash basis) and appropriate reconciliation procedures have not been designed and implemented to reconcile between the two and demonstrate the accuracy of grant reporting.
Effect:
The Association is at an increased risk for grant reporting errors or omissions.
Questioned Costs:
N/A
Recommendation:
We recommend reconciling all reports submitted to the grantor to the underlying accounting records used to prepare the schedule of expenditures of federal awards.
Views of Responsible Officials:
Management concurs with the finding and has developed a plan to correct the finding.