Audit 405509

2025-001 Preparation of Schedule of Federal Expenditures of Federal Awards ("SEFA") Criteria The SEFA is required to be prepared in accordance with the Uniform Guidance to reflect expenditures of federal awards. Condition The original SEFA presented to the audit firm was overstated by $35,921 due to inclusion of nonfederal award expenditures. Context The SEFA included revenue amounts that the Chamber had received through revenue streams other than a federal award. Effect The SEFA did not properly reflect the amount of federal awards as required by Uniform Guidance and had the potential to have an incorrect major program selected. Cause The Chamber's internal control over the preparation of the SEFA was not effective to verify the proper amount of federal expenditures. Auditor's Recommendations We recommend implementation of procedures to provide oversight that ensures the completion of an accurate SEFA.

2025-002 Significant Deficiency in Internal Controls Over Noncompliance and Noncompliance over Major Programs Criteria Internal controls and other compliance knowledge should support the wages billed to the federal award. Per 2 CFR 200.430(g)(1), "charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed" and "be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable and properly allocated." Condition Internal control and adherence to compliance were not followed with regards to records that accurately reflect the work performed. Questioned costs Total questioned cost of $1,277 based on the payroll transactions tested for one employee that were not accurately supported with records that reflected the work performed. Context During our payroll testing, of the ten payroll transactions we tested, one employee had two payroll transactions that indicated the wages billed to the federal award were not accurately supported by the employee's timesheet. We expanded our payroll testing and sampled four additional transactions for this employee. Of the six total payroll transactions tested for this employee, none of them were accurately supported by their timesheet for hours worked on the federal award. Cause The error was caused by not applying adequate number of controls necessary for billing wage expenses to the federal award. Effect The Federal award was incorrectly charged with unreasonable wages. Repeat Finding No. Auditor's Recommendations We recommend that Chamber implement stronger internal controls over billing wage expenses to the federal award.