Finding Text
Criteria: The tracking and matching of grant revenues and expenditures and the related grant receivable and unearned revenue amounts is necessary to assist in making management decisions and for the proper reporting and use of those funds in accordance with each of the individual grant requirements. In addition, this information is essential in preparing the Center's Schedule of Expenditures of Federal Awards (SEFA).
Condition/Context: The Center's system of tracking its grants and matching revenues with expenditures lacks the necessary level of sophistication, given the number and complexities of the Center's grant activities, which hampers the Center's ability to maintain an accurate general ledger and prepare a complete and accurate SEFA. We also found that not all grants or funding programs had a document outlining the grant's requirements or conditions. Without these documents, the Center risks not complying with grants conditions which could result in the rejection of reimbursement requests or loss of grant funding.
Effect: Grants receivable and unearned revenue amounts are not readily ascertainable to assist in making management decisions or for use in the timely preparation of the Center's SEFA. The Center did not prepare a complete and accurate SEFA in a timely manner to comply with its financial reporting requirements. In addition, the Center is not complying with grants conditions resulting in the potential rejection of reimbursement requests or loss of grant funding.
Cause: The Center has not prioritized a formal system for tracking its grant activities.
Recommendation: We recommend that the Center develop and implement a formal system for tracking its grant related activities and in doing so require that all departments with responsibility for federal award programs provide periodic reconciliations of their grant reports to the general ledger to a responsible management official.
Views of Responsible Officials and Planned Corrective Actions: Management agrees and is working to realign staff responsibilities to provide a dedicated business office staff member to oversee, track, report and manage all of the Center's grant awards.