Finding Text
Criteria
Financial reports submitted for federal grants should be supported by the grantee’s accounting records.
Condition
Financial reports submitted by the Organization for its major federal program grants did not reconcile to the Organization’s accounting records. Also, there was no indication that financial reports were reviewed and approved by supervisory staff.
Population of Items Tested
Eight financial reports were tested and four were found to have expenditures reported more than the Organization’s expenditure amount in the accounting records for the applicable period. All eight financial reports lacked documentation of supervisory review and approval.
Cause of Condition
The cause of the condition is unknown.
Effects of Condition
Financial reports for major federal program grants were not consistently supported by the Organization’s accounting records.
Questioned Costs
No questioned costs over $25,000.
Auditor’s Recommendations
Procedures should be implemented to ensure financial reports are accurately prepared, reviewed, and approved before submission, and documentation should be maintained for these components.