Finding Text
Condition The Agency did not keep accurate accounting records during the year. The following issues occurred: (1) Several grants that ended in current or previous fiscal years did not have their fund properly closed out in the accounting records. (2) In some instances the cost allocation plan was not allocating costs according to the supporting data. Also, costs were not allocated to all open grants. Criteria Grant agreements require grantees to have an accounting system that provides accurate, current and complete disclosure of all financial transactions related to each program. Accounting records must contain information pertaining to state and federal pass-through awards, authorizations, obligations, unobligated balances, assets, outlays and income. These records must be maintained on a current basis and balanced at least quarterly.Cause This was the current Fiscal Director?s first year with the Agency. Effect The Agency could not provide accurate accounting records during fiscal year 2022. Proper management of a company cannot take place when the accuracy of the company?s books cannot be relied upon. Recommendation The Agency has taken many steps to ensure that the daily, monthly and yearly accounting processes required to maintain accurate, current and complete accounting records are in place. And the company?s books have improved greatly over last year. We recommend that steps be taken to close out old funds whose balances roll from year to year with no activity. Views of Responsible Officials Agree.