Non-Profit

Grant Audit Finding — Disallowed Cost

Recording the repayment of a grant amount disallowed by the donor's auditor.

Account NameTypeDebit ($)Credit ($)
Grant Disallowed Cost ExpenseExpense (+)3,500.00-
Cash / BankAsset (-)-3,500.00

💡 Accountant's Note

If an auditor disallows a cost (e.g., deemed not eligible under the grant), the NGO must repay it. This is a current-period expense — previously recognized grant revenue is not reversed.

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