Audit 412067

Criteria: Internal controls should be designed to capture federal expenditures in order to ensure that an accurate Schedule of Expenditures of Federal Awards (SEFA) can be prepared. Condition: Uniform Guidance section 200.510 requires the auditee to prepare a SEFA. A complete and accurate SEFA was not provided to the audit team until several revisions based on questions from the auditor. Cause: A cost-reimbursement contract was new this year but was not included on the SEFA originally. Certain formulas were miscalculating on the spreadsheet. Certain amounts were incorrect originally. Questioned costs: NONE. Effect: The SEFA is used by the auditor to determine which federal programs are to be audited as major programs and to accurately report expenditures to the federal government and granting agencies. Major programs may not be properly identified and report in accordance with the Uniform Guidance. Recommendation: All information should be included on the SEFA by employees familiar with the grant awards. All grant awards should be evaluated for the nature of the funding and identified as federal, if applicable. A review should be performed by someone other than the preparer for accuracy and completeness. A reconciliation between the SEFA and the financial statements should be performed prior to submitting the SEFA to the auditor for testing. Management's Response: Management agrees with the finding.