Finding 855562 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-04

AI Summary

  • Core Issue: Non-governmental grants are incorrectly recorded as liabilities instead of contributions with donor restrictions.
  • Impacted Requirements: This misclassification violates Generally Accepted Accounting Principles (GAAP) regarding grant recognition.
  • Recommended Follow-up: Implement procedures to classify these grants correctly and maintain a net asset rollforward schedule.

Finding Text

2022 ? 001 Non-governmental grants Condition: Non-governmental grants without barriers to recognition are being recorded as a liability instead of as contributions with donor restrictions as required under Generally Accepted Accounting Principles. Criteria: Generally Accepted Accounting Principles require grants with purpose or time restrictions, but with no barriers to recognition, to be recorded as contributions with donor restrictions. Cause: There are no procedures in place to appropriately classify and record grants with purpose or time restrictions, but no barriers to recognition, as contributions with donor restrictions. Effect: Non-governmental grants are being recorded as a liability rather than as support and revenue with donor restrictions. Recommendation: Procedures should be implemented to record grants with purpose or time restrictions as net assets with donor restrictions rather than as liabilities and a net asset rollforward schedule to track such grants should be maintained. Views of Responsible Officials and Planned Corrective Actions: ElderHomes Corporation dba project:HOMES and Subsidiaries agrees with the finding and the recommend procedures have been implemented.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 279119 2022-002
    Material Weakness
  • 279120 2022-001
    Material Weakness
  • 855561 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $2.65M
14.218 Community Development Block Grants/entitlement Grants $2.02M
14.239 Home Investment Partnerships Program $1.43M
81.042 Weatherization Assistance for Low-Income Persons $910,426
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $570,307
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $12,500