Finding Text
All Funding Sources
Significant Deficiency
Reporting
Criteria
Condition
Cause
Effect
Recommendation
Management's Response
Management agrees with our recommendation and finding and will work to ensure each
grant's financial report is reviewed and approved each month.
An entity must have controls in place to ensure that reports for federal awards are
supported by applicable accounting records. Grant activity is tracked in the general
ledger based on grant codes. Internal processes are designed such that the Assistant
Executive Director reviews accuracy of grant reports by comparing to the grant activity
within the general ledger.
During the year we noted certain grant reports did not match the underlying general
ledger data for the same period.
Per discussion with Assistant Executive Director, certain allocation adjustments may be
determined necessary during the preparation of reports that are not being posted
appropriately to the general ledger. In one reporting instance identified, salary
allocations were adjusted to reflect grant related costs; however, this reallocation was not
updated in the ledger.
Inaccurate reporting could result in costs being disallowed and subject the entity to
possible claims.
We recommend reports be reviewed against the general ledger prior to submission, and
any discrepancies should be addressed timely.