1. Immediate Review: A comprehensive review of all grant revenues and expenditures has been initiated. We are collating data from our financial systems to identify discrepancies and ensure compliance with accrual accounting principles.
2. Establishment of Procedures: We are developing formal procedures and guidelines to ensure that revenue recognition aligns with the expenditures incurred. These guidelines will incorporate the principles of the matching concept to enhance accuracy in reporting.
3. Implementation of a Review Process: A dedicated team will be assigned to oversee the preparation of the SEFA. This team will conduct regular reviews and reconciliations of all reported expenditures against revenues recognized in our financial statements.
4. Training and Development: Management will provide training for relevant staff on revenue recognition principles and the importance of SEFA requirements. This will include workshops focused on financial reporting standards to ensure everyone is adequately equipped to comply.
5. Regular Audits: We commit to conducting periodic audits of grant activities and SEFA reporting to identify any potential issues proactively and correct them before they impact our financial reporting.