Finding Text
During our audit, we noted that grant revenue in the prior period was not properly recognized as contribution revenue when the District’s grant expenditures were incurred. This is due to the lack of a process to track grant expenditures to grant receipts with proper cutoff. As a result, prior period adjustments were recorded to properly recognize the grant award in the 2021 reporting periods. In addition, our analysis revealed that the District’s capital assets and accounts payable balances were understated in 2021 as a result.