Finding #2024-003: Internal Control Over Compliance and SEFA Reporting Contact Person Responsible: Jennifer Patrick, Project Manager Milk River Joint Board of Control Corrective Action Planned: 1. Develop SEFA preparation procedures, including grant identification, Assistance Listing Number verifica...
Finding #2024-003: Internal Control Over Compliance and SEFA Reporting Contact Person Responsible: Jennifer Patrick, Project Manager Milk River Joint Board of Control Corrective Action Planned: 1. Develop SEFA preparation procedures, including grant identification, Assistance Listing Number verification, and reconciliation to the general ledger. 2. Establish a dual review process where the SEFA is reviewed and approved by a party independent of the preparer prior to submission to auditors. 3. Perform an annual reconciliation of SEFA totals to audited financial statements before audit fieldwork. Completion Date: This item was corrected during the 2024 audit process. A tracking spreadsheet has been implemented for 2025 to ensure proper identification, classification, and reporting moving forward. This control will remain in place as an ongoing activity for all federal funding to ensure continued compliance with reporting requirements. Disagreement with Finding: MRJBOC agrees with the finding; however, we would like to clarify that the reporting discrepancy was primarily the result of timing and classification factors. Specifically, certain funding initially received through the State of Montana was not identified as federal pass-through funding until after the SEFA was completed. Once it was determined that the funding required federal reporting under SEFA guidelines rather than state grant reporting, adjustments were necessary to properly reflect the award information. MRJBOC recognizes the importance of accurate grant identification and reporting and will implement the corrective actions outlined to strengthen internal controls, grant tracking procedures, and SEFA preparation processes moving forward. We have also taken steps to ensure a clear understanding of the findings and will continue to monitor and address them in future fiscal years. I certify this Corrective Action Plan has been prepared in accordance with 2 CFR §200.516 and addresses all audit findings for the year ended December 31, 2024.