Finding Text
Criteria: Revenues were recorded in incorrect periods. Grant revenue should be recognized when all grant conditions are satisfied. Condition: Significant audit adjustments were made to correct the timing of revenue recognition based on the conditions stated in the grant agreements. Cause: The Organization does not have sufficient controls in place to prevent or detect errors in the timing of revenue recognition or recognition of liabilities related to grant funds received in advance. Effect: Multiple audit adjustments were identified and made. Recommendation: The Organization should further refine its existing processes so that the necessary accounting adjustments are made when needed. Grant revenue should be recognized in the appropriate period.
Proposed Completion Date: January 31, 2024