Audit 45794

Finding Number: 2022-001- Review and Approval of the Schedule of Expenditures of Federal Awards (SEFA) (Material Weakness) Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The Organization should have a process in place to perform a review of the SEFA, to include evidence of the resolution of variances, as well as a process to document the overall review and approval to ensure proper presentation, completeness, and accuracy of the SEFA. Condition: During the course of the audit, the engagement team identified multiple instances where the SEFA was not accurately prepared and presented. Questioned Costs: None noted. Cause: The Organization does not have an appropriate process in place to review the SEFA, to include retaining evidence of the resolution of variances, as well as documentation of the overall review and approval. Effect or Potential Effect: Potential misstatement could occur if expenditure amounts are not accurately presented on the SEFA. Recommendation: The Organization should develop a consistent process to review the SEFA. Issues identified during the course of the review should be investigated and resolved in a timely manner. The Organization should design a process to retain documentation of the review process and the resolution of any issues identified. Views of Responsible Officials: The Organization agrees with the federal award finding identified in the audit. The Organization's response to this finding is described in the accompanying management's planned corrective action plan. Prior Year Findings: 2021-002

Finding Number: 2022-001- Review and Approval of the Schedule of Expenditures of Federal Awards (SEFA) (Material Weakness) Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The Organization should have a process in place to perform a review of the SEFA, to include evidence of the resolution of variances, as well as a process to document the overall review and approval to ensure proper presentation, completeness, and accuracy of the SEFA. Condition: During the course of the audit, the engagement team identified multiple instances where the SEFA was not accurately prepared and presented. Questioned Costs: None noted. Cause: The Organization does not have an appropriate process in place to review the SEFA, to include retaining evidence of the resolution of variances, as well as documentation of the overall review and approval. Effect or Potential Effect: Potential misstatement could occur if expenditure amounts are not accurately presented on the SEFA. Recommendation: The Organization should develop a consistent process to review the SEFA. Issues identified during the course of the review should be investigated and resolved in a timely manner. The Organization should design a process to retain documentation of the review process and the resolution of any issues identified. Views of Responsible Officials: The Organization agrees with the federal award finding identified in the audit. The Organization's response to this finding is described in the accompanying management's planned corrective action plan. Prior Year Findings: 2021-002