Finding Text
Condition: The accounting system does not provide for proper classification of federal grant expenditures. Federal grant expenditures are required to be reported to the grantor for reimbursement by the organization. We noted during our audit testing, the monthly report for the 21st Century reimbursement billing did not agree with the monthly general ledger report from the accounting system. In addition, we noted changes made in the accounting system after the billing for reimbursement was prepared. Criteria: The accounting system should provide the proper classification of all federal grant funds received and expenditures made to ensure reporting to federal grantors is accurate. Cause: The accounting system was not setup correctly to properly classify federal grant expenses from other organization expenses. Effect: The balances reported for the 21st Century grant did not reflect accurate expenditures due to the accounting system not setup for classification of expenditures for that grant. Recommendation: We recommend that the organization's accounting system reflect the correct classification of all grant funds received and expended to ensure accurate reporting to all grantors and for accurate presentation in the Schedule of Federal Awards.