Audit 401835

Criteria: Management is responsible for preparing the Schedule of Expenditures of Federal and State Awards (SEFSA) in accordance with applicable reporting requirements. The SEFSA should be supported by underlying accounting records and reconciled to the general ledger to ensure completeness and accuracy of reported expenditures. Condition: We determined that management did not maintain sufficient and reconciled expenses details for the amounts reported on the SEFSA. Specifically, the reported amounts could not be readily reconciled to the underlying accounting records and general ledger. Questioned Costs (QC): There was no affect to eligibility and there were no questioned costs. Context: The SEFSA was prepared using summary-level information without adequate supporting schedules to substantiate the reported balances. As a result, a formal reconciliation between the SEFSA and the general ledger could not be readily performed. Effect: The lack of supporting documentation and reconciliation increases the risk that federal and state expenditures reported on the SEFSA may be misstated and not in compliance with reporting requirements. Cause: This condition is the result of the inadequate maintenance of detailed supporting documentation for the amounts reported on the SEFSA. Recommendation: Detailed supporting schedules for all amounts reported on the SEFSA need to maintained and reconciliations of the SEFSA to the general ledger need to be completed, at minimum, on an annual basis. This reconciliation should be reviewed for completeness and accuracy, and any differences should be investigated and resolved in a timely manner.