Finding Text
Criteria: The Organization should have internal controls in place to ensure that all transactions are
recorded in the proper period in accordance with accounting principles generally accepted in the United
States of America.
Condition: The financial statements required material adjustments to be in accordance with generally
accepted accounting principles that were identified by our audit procedures.
Context: There was turnover in the Executive Director position at the Organization halfway through the
year. While the new Executive Director is extremely knowledgeable, he is still obtaining an
understanding of all of the different grants held by the Organization.
Effect: There were material adjustments required to correct the financial statements.
Recommendation: We recommend that the Organization implement controls to ensure that revenues and
receivables are recorded in the correct period in accordance with generally accepted accounting principles
as well as their grant agreements.
Responsible Official’s Response: Management agrees and will implement procedures to ensure that the
financial statements are prepared in accordance with accounting principles generally accepted in the
United States of America.