Finding Text
2022-003 ? Grant Revenue and Schedule of Federal Expenditures Criteria: The grant revenue should be accurately accounted for during the year to allow for the timely completion by management of the schedule of federal expenditures. Condition: Multiple grant revenue funding sources were posted to one general ledger account. This required the individual grant entries to be segregated out by grant and tied to external source in order to obtain assurance the grant revenue was not materially misstated for the reporting of the related expenditures for the preparation of the schedule of federal expenditures. This was a very time-consuming process which required the assistance of the fractional Chief Financial Officer working with the auditors to reconcile the grant revenue. This delayed the ability to prepare an accurate schedule of federal expenditures. Cause: During most of the year ended June 30, 2022, Sadler Health Center Corporation (the Center) was functioning without a full time Chief Financial Officer without the knowledge to accurately account for the grant revenue and provide oversight of the accounting for federal expenditures. Effect: The completion of the schedule of federal expenditures was delayed until late in the audit process. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: The Center needs to emphasize the accounting for grant revenues by source and review the process for tracking grant expenditures. Views of Responsible Officials: Management agrees with the above finding and has taken the following actions: ? Leadership hired a full-time Controller, effective date of May 2023 ? Temporary contracted bookkeeper engaged, effective date March 2023 ? Professional recruiting support engaged for CFO search ? Sr. Staff Accountant position has been posted for hire ? Fully staffed accounting department will consist of the following: o Chief Financial Officer o Controller o Sr. Staff Accountant o Staff Accountant ? Interim CFO and Controller are actively engaged in establishing internal controls and procedures for reconciliation of accounts on a monthly basis; including establishing a daily, weekly, monthly, quarterly and annually tasks list with Assigned personnel and due dates. This is now inclusive of establishing Grant Tracking tools such as, Excel Workbooks, appropriate General Ledger segmenting to be able to assign financial transactions