Accounting for Unsubmitted Grant Reimbursement Claims and Related Auditing and Reporting Considerations

In this case, because of the uncertainty as to pending acceptance and approval of the billing by the grantor, collectability necessarily became more susceptible to estimation by management. Because the estimated uncollectible portion would not relate to either unexpended reimbursable amounts or, as it might for an exchange transaction, to cash payments received in advance of delivery of goods or services, the full contribution income should be recognized, and the related balance sheet credit should not be recorded as either "contract liabilities" (as is provided in ASC 606 for exchange transactions, but not for contributions) or as any acceptable alternative liability classification such as "deferred revenue." [...]that acceptance happens, I prefer the term "unbilled grant reimbursements" (or "unbilled grant reimbursement claims"). [...]if the control deficiency that had been observed was with regard to a grant for a federally funded program subject to audit for Single Audit Act purposes, the finding would probably likewise need to be reported as attributable to a compliance control deficiency.