Finding Text
2022-004 Noncash Federal Awards
Criteria: Organizations are responsible for adjusting their financial statements, including recording grant related noncash contributed capital assets.
Condition/Context: During the audit process, we noted the contributed capital for noncash federal awards was not recorded as revenue. We consider the deficiency described to be a material weakness.
Effect: During our audit, we posted material adjusting journal entries to correct misstatements. With regular and timely review, management can maintain up-to-date records of account balances and detail.
Recommendation: We recommend the District develop procedures to review the project status for IDOT let projects at least annually and record the related contributed capital revenue and capital asset as of year-end.
Views of Responsible Officials: Management agrees with this finding and a response is included in the Corrective Action Plan.