Findings from a U.S Government Accountability Office
From the U.S Government Accountability Office's audit findings from March 26, 2025, subaward oversight is always related to:
- Incomplete subaward reporting to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
- Weak subrecipient monitoring.
- Eligibility of grant recipients was not properly verified.
When nonprofit compliance fails, the problem is often not a lack of effort—it is a lack of visibility, consistent controls, and defensible documentation. Sage Intacct helps nonprofits maintain audit-ready records, track restricted funding, automate approvals, and give leadership real-time insight into how every dollar is being used.
Sage Intacct can help a nonprofit move from reactive audit preparation to continuous financial accountability. How?
1. Maintains a clear audit trail
With Sage Intacct, you can record transaction history, supporting documentation, approvals, and changes in one financial system. Paperless audits are made more practical. This gives auditors a traceable path from the financial statements back to the original transaction and approval.
That can reduce problems such as:
- Missing invoices or receipts
- Unexplained journal entries
- Inconsistent spreadsheets
- Difficulty proving who approved a transaction
- Time-consuming requests for supporting documents
2. Strengthens internal controls
Many audit failures are not caused by accounting rules alone; they result from weak processes. Sage Intacct can support role-based permissions, approval workflows, segregation of duties, and authorization limits.
For example, the person entering a vendor invoice can be prevented from also approving and paying it. This reduces the opportunity for errors, unauthorized spending, or fraud. Sage identifies segregation of duties, approval processes, reconciliations, and documentation as important preventive and detective controls for nonprofits.
3. Tracks restricted funds and grants
Nonprofits must demonstrate that restricted donations and grants were used only for their intended purposes. Sage Intacct can track revenue and expenses by grant, fund, program, department, location, funding source, or other organizational dimensions.
This makes it easier to answer questions such as:
- How much of a grant has been spent?
- Which costs are allowable under the award?
- Are any funds being used outside donor restrictions?
- What funds remain available?
- Which reporting deadlines or grant periods are approaching?
With all these questions answered, rest assured that your organization has demonstrated compliance with funding restrictions, strengthened relationships with grantors, and connected expenses to the outcomes they supported.
4. Improves the accuracy of financial reporting
Audit problems frequently arise when reports are assembled manually from several spreadsheets or disconnected systems. Sage Intacct centralizes financial data and produces reports using consistent accounting records.
A nonprofit can generate reporting by:
- Restricted and unrestricted net assets
- Program, administration, and fundraising functions
- Grant or funding source
- Budget versus actual results
- Entity, department, or location
- Statement of activities and financial position
Sage Intacct can cater to your non-profit's need for specialized reporting and classification of funds according to donor restrictions.
5. Gives leadership and the board earlier visibility
Compliance issues often grow because management or the board does not see them until the audit. Sage Intacct dashboards can display budget variances, grant balances, restricted cash, overdue receivables, unusual transactions, and program performance throughout the year.
Instead of discovering funding overrun months later, leadership can intervene while corrective action is still possible.
Sage Intacct does not replace knowledgeable finance personnel, auditors, grant administrators, or legal advice. Its value is in giving those teams a more controlled, transparent, and reliable financial environment in which to work. Our consultants are ready to assist, so why not contact us and find out more?
.avif)