Finding Text
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.