Finding Text
Criteria
A process should ensure grant revenue is accurately and timely recorded.
Condition
The Academy didn’t have a process in place to ensure that grant revenue was reported accurately and timely.
Context
During our testing, we noted errors in recording various revenue, accounts receivable, and unearned revenue accounts. This included instances where revenues were not properly recorded, and drawdowns for grants were processed beyond the sixty-day requirement, which led to a reduction in revenue.
Cause and Effect
There is no process to ensure that grant revenues are timely and accurately accounted for.
Recommendation
We recommend that the Academy implement a process that would allow for the accurate recording of grant revenue and timely request of cash drawdowns.
Management’s Response
Management will ensure experienced staff is recruited, retained, and trained to support grant revenues, which are accurately drawn and reported to an appropriate accountant for recording.