Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Higher Education Institutional Aid, Assistance Listing Number (ALN) 84.031, U. S. Department of Education Federal Perkins Loan Program, ALN 84.038, U.S. Department of Education Ryan White HIV/AIDS Dental Reimbursement and Community Based Dental Partnership Grants, ALN 93.924, U. S. Department of Health and Human Services Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease, ALN 93.918, U. S. Department of Health and Human Services Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027, U. S. Department of Treasury Program Year 2023-2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Applicable Institution(s): Alcorn State University (ASU), Delta State University (DSU), Jackson State University (JSU), Mississippi University for Women (MUW), Mississippi Valley State University (MVSU), University of Mississippi (UM), University of Mississippi Medical Center (UMMC), and University of Southern Mississippi (USM) Criteria or Specific Requirement – The Uniform Guidance requires auditees prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended (2 CFR 200.502) Condition – The SEFA contained errors and incorrect information which affected the major program determination. Cause – Awards were incorrectly coded during the award set up process. Effect or Potential Effect – The SEFA was not prepared in accordance with OMB requirements, which affects the major program risk assessment. Questioned Costs - None Context – The following SEFA errors were noted: • ASU, JSU, and MVSU did not identify $20,173,259 of awards that should have been classified as a part of the research and development cluster (R&D) for ALN 84.031 during the year ended June 30, 2024. • UMMC improperly coded program income of $5,730,877 to ALN 93.924 that was from ALN 93.918. • UMMC improperly included $2,000,000 as expenditures of ALN 21.027 when it was a beneficiary rather than a subrecipient and, therefore, should not be included on the SEFA. • ASU, DSU, JSU, MUW, MVSU, UM, UMMC, and USM did not include $1,343,580 of awards expended under ALN 21.027. • JSU improperly excluded $1,238,792 of Federal Perkins Loans program from the SEFA. Identification as a Repeat Finding, if Applicable – 2023-001 and 2022-002 Recommendation – The institutions should review and revise internal controls over the SEFA preparation to ensure federal expenditures are properly identified and classified. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plans.
Finding Reference Number: 2024-006 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF00995-00, F22AF00929-00, F23AF03086-00, F22AF00514-01, F22AF02616-02, F19AF00556-01, F21AF04030-06, F22AF03670-01 Federal Award Year: 2019, 2021, 2022, 2023 U.S. Department of Interior Compliance Requirement: SEFA Reporting Type of Finding: Material Weakness and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR section 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition The New Hampshire Fish and Game Department (the Department) oversees 25 different grants funded under the Fish and Wildlife Cluster (the Program). To assist in the management of the grants, the Department uses QuickBooks as their main system of books and records, rather than the State of New Hampshire’s centralized accounting system, NH First. The Department manually enters expenditure transactional data into QuickBooks and heavily relies on a number of excel tracking sheets to track expenditures, cash draws, and in-kind match earned for each of the 25 grants. During our testwork over the Program, we identified the following: A. For 2 of 25 grants, we identified that there were out of period costs that were included on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024. Specifically we identified the following: a. For 1 of the 2 grants, the Department, included $247,562 of the expenditures that were paid between March 17, 2017 and January 13, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. b. For the other 1 of 2 grants, the Department included $761 of expenditures that were paid on February 10, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. B. For 1 of 25 grants, the Department reported on the SEFA the amount reimbursed through the cash draw process as of June 30, 2024 rather than expenditures paid during that same period. As such, the amount reported on the June 30, 2024 SEFA was understated by $14,830. C. For 1 of 25 grants, we were unable to reconcile the amount reported on the SEFA. For the grant, the Department included $2,637,617 of expenditures on the June 30, 2024 SEFA. As part of our review of the expenditures reported, we were unable to recalculate the amount included by the Department. Based upon the total expenditures incurred during the period ending June 30, 2024, it appeared that the amount that should have been reported was $2,755,548. As such, it appeared that the June 30 2024 was understated by $117,931. D. For 5 of 5 grants that reported subrecipient pass through expenditures, it appeared that the Department reported pass-through expenditures on the SEFA that included both the state and federal share of the costs, resulting in the pass-through amount being overstated by $118,195. Cause The cause of the condition found appears to be related to the heavy reliance on manual spreadsheets and QuickBooks. The manual data entry into QuickBooks and the use of spreadsheets are susceptible to human error. As the Department does not have any internal controls in place to ensure the spreadsheets or QuickBooks reconcile to NH First, if there was an error in the data used by the Department, it would be difficult to detect. In addition, the Department incorrectly included prior period costs on the SEFA as it had been believed that since the costs had not previously been reported but were eligible for reimbursement should be included on the June 30, 2024 SEFA. Effect The effect of the condition found is that the expenditures and subrecipient pass through amounts were not accurately presented on the SEFA. Questioned Costs: Not determinable. Recommendation We recommend that the Department develop written policies and procedures and implement internal controls to ensure all spreadsheets utilized to manage the program reconcile to QuickBooks and that QuickBooks reconciles to NH first on a routine basis. The Department should also implement internal controls to evaluate the amounts reported on the SEFA to ensure that only current period expenditures that are eligible for reimbursement are reported on the SEFA. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, we were unable to obtain documentation that supported a reconciliation between QuickBooks and New Hampshire First was performed. The amounts reported on the SEFA by the Department for this program were not complete and accurate.
Finding Reference Number: 2024-007 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF02312-00, F21AF04100-02, F22AF02844-00, F24AF00586-00, F23AF02720-00, F21AF03886-03, F20AF11939-04, F23AF02954-00, F23AF02609-00, F23AF02714-01, F19AF00556-01, F19AF00556-01, F22AF03670-01, F19AF00556-01, F22AF02616-02, F22AF00514-01, F19AF00556-01, F21AF04030-06 Federal Award Year: 2019, 2020 2021, 2022, 2023, 2024 U.S. Department of Interior Compliance Requirement: Activities Allowed or Unallowed/Allowable Costs/Costs Principles Type of Finding: Material Weakness and Material Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Per Part 3 of the Compliance Supplement, costs must be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity in order to be allowable under federal awards. Further per 2 CFR section 200.502, the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as expenditure/expense transactions associated with grants. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testwork over Activities Allowed or Unallowed/Allowable Costs/Costs Principles, we identified the following: A. For 18 of 25 payroll and fringe benefit costs selected for testwork, we were unable to agree the payroll and fringe benefit costs charged to the Fish and Wildlife Cluster (the program) to the State of New Hampshire’s centralized accounting system, NH First. The New Hampshire Department of Fish and Game (the Department) does not charge payroll and fringe benefit costs incurred by the program as processed in NH First. Instead, the Department utilizes an internally calculated "federal rate" that is used to charge both payroll and fringe benefit costs based upon the number of hours worked to the program. As described by the Department, the federal rate is calculated based upon an employee's fringe benefits, the approved NH First pay rate, and the employee’s years of service. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 20 samples selected testwork as recorded in NH First, we were not able to reconcile this amount to what the Department actually charged the program. A variance of $9,754 was identified and included in the Questioned Cost amount below. B. For 5 of 25 payroll costs selected for testwork, we were unable to obtain support to substantiate the payroll costs recorded by the Department, including the Fish and Game Activity Task Report, which shows the Department's method of allocating time and payroll to the Cluster. As a result, we were unable to reconcile the amount paid in NH First of $11,541 to what the Department had allocated to the program. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 5 samples selected based upon what was recorded in NH First, we were not able to reconcile this amount to what the Department had actually charged the program. Since we were unable to determine what was charged to the program this amount is not a known questioned cost below. C. Indirect costs charged to the program are based upon the Department's "federal rate" calculation of payroll and fringe benefit costs as described above in Bullet A. As a result, we were unable to substantiate the basis upon which the indirect cost rate was applied for all 25 payroll periods for testwork. We further noted that for 2 of 25 payroll periods selected for testwork, the indirect costs drawn down at the time of grant close out in proportion to the payroll drawn down exceeded the 18.19% indirect cost rate that should be applied to payroll. A variance of $1,655 was identified and included in the Questioned Cost amount below. D. During our testwork over the allowability of non-payroll costs, we identified that for 2 of 60 invoices selected for testwork, the invoice was not approved by the Division Chief prior to payment as required. Of the 2 invoices, 1 invoice was approved by the program supervisor and 1 invoice did not contain any evidence of it being approved. While the invoices did not appear to be properly reviewed, the amount paid appeared to be properly supported and as such, no questioned costs were identified. Cause The cause of the condition found is that the Department does not utilize the NH First system as the basis to charge payroll, fringe and indirect costs to the program. As described in the condition found above, the Department performs its own calculation of what the payroll and fringe benefit costs are based upon the Department’s calculated federal rate and then subsequently data enters their calculated expenditure information into QuickBooks. The Department uses QuickBooks to track all federal expenditures under the program by individual federal grant. The Department does not perform any reconciliations to ensure what was entered into QuickBooks reconciles to the NH First system in order to verify that the data in QuickBooks is complete and accurate. In addition, the cause of the condition found related to the review and approval of non-payroll costs is primarily a result of insufficient internal controls in place to ensure all invoices are reviewed and approved prior to payment. Effect The effect of the condition found is that the Department would be unable to detect an error within the amounts data entered into QuickBooks and the amount allocated to the program could be inaccurate. In addition, insufficient review and approval of non-payroll expenditures could result in unallowable costs charged to the program. Questioned Costs: $11,409 Recommendation We recommend that the Department develop written policies and procedures that outline how payroll and fringe benefit costs are charged to the program and implement controls to ensure the amount of payroll and fringe benefits entered into QuickBooks properly reconciles to NH First as part of its routine payroll process. We also recommend that the Department implement internal controls to ensure that the correct indirect cost rate is utilized based upon the applicable time period for which indirect costs are being calculated. Finally, we recommend that the Department review its existing policies and procedures related to the review and approval of non-payroll expenditures to ensure that they are properly reviewed and approved prior to payment. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, the Department did not provide documentation to support that QuickBooks is reconciled to New Hampshire First to ensure that the data within QuickBooks is complete and accurate. Within Bullets B and C were unable to obtain documentation to support these transactions from the Department within a timely manner. As a result of our audit procedures, we identified questioned costs of $11,409. We further note that the NH First system does allow for the allocation of employee salaries to grants from the standard or normal accounting assignment of their costs. The Department has elected not to implement this model.
Finding Reference Number: 2024-006 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF00995-00, F22AF00929-00, F23AF03086-00, F22AF00514-01, F22AF02616-02, F19AF00556-01, F21AF04030-06, F22AF03670-01 Federal Award Year: 2019, 2021, 2022, 2023 U.S. Department of Interior Compliance Requirement: SEFA Reporting Type of Finding: Material Weakness and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR section 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition The New Hampshire Fish and Game Department (the Department) oversees 25 different grants funded under the Fish and Wildlife Cluster (the Program). To assist in the management of the grants, the Department uses QuickBooks as their main system of books and records, rather than the State of New Hampshire’s centralized accounting system, NH First. The Department manually enters expenditure transactional data into QuickBooks and heavily relies on a number of excel tracking sheets to track expenditures, cash draws, and in-kind match earned for each of the 25 grants. During our testwork over the Program, we identified the following: A. For 2 of 25 grants, we identified that there were out of period costs that were included on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024. Specifically we identified the following: a. For 1 of the 2 grants, the Department, included $247,562 of the expenditures that were paid between March 17, 2017 and January 13, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. b. For the other 1 of 2 grants, the Department included $761 of expenditures that were paid on February 10, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. B. For 1 of 25 grants, the Department reported on the SEFA the amount reimbursed through the cash draw process as of June 30, 2024 rather than expenditures paid during that same period. As such, the amount reported on the June 30, 2024 SEFA was understated by $14,830. C. For 1 of 25 grants, we were unable to reconcile the amount reported on the SEFA. For the grant, the Department included $2,637,617 of expenditures on the June 30, 2024 SEFA. As part of our review of the expenditures reported, we were unable to recalculate the amount included by the Department. Based upon the total expenditures incurred during the period ending June 30, 2024, it appeared that the amount that should have been reported was $2,755,548. As such, it appeared that the June 30 2024 was understated by $117,931. D. For 5 of 5 grants that reported subrecipient pass through expenditures, it appeared that the Department reported pass-through expenditures on the SEFA that included both the state and federal share of the costs, resulting in the pass-through amount being overstated by $118,195. Cause The cause of the condition found appears to be related to the heavy reliance on manual spreadsheets and QuickBooks. The manual data entry into QuickBooks and the use of spreadsheets are susceptible to human error. As the Department does not have any internal controls in place to ensure the spreadsheets or QuickBooks reconcile to NH First, if there was an error in the data used by the Department, it would be difficult to detect. In addition, the Department incorrectly included prior period costs on the SEFA as it had been believed that since the costs had not previously been reported but were eligible for reimbursement should be included on the June 30, 2024 SEFA. Effect The effect of the condition found is that the expenditures and subrecipient pass through amounts were not accurately presented on the SEFA. Questioned Costs: Not determinable. Recommendation We recommend that the Department develop written policies and procedures and implement internal controls to ensure all spreadsheets utilized to manage the program reconcile to QuickBooks and that QuickBooks reconciles to NH first on a routine basis. The Department should also implement internal controls to evaluate the amounts reported on the SEFA to ensure that only current period expenditures that are eligible for reimbursement are reported on the SEFA. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, we were unable to obtain documentation that supported a reconciliation between QuickBooks and New Hampshire First was performed. The amounts reported on the SEFA by the Department for this program were not complete and accurate.
Finding Reference Number: 2024-007 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF02312-00, F21AF04100-02, F22AF02844-00, F24AF00586-00, F23AF02720-00, F21AF03886-03, F20AF11939-04, F23AF02954-00, F23AF02609-00, F23AF02714-01, F19AF00556-01, F19AF00556-01, F22AF03670-01, F19AF00556-01, F22AF02616-02, F22AF00514-01, F19AF00556-01, F21AF04030-06 Federal Award Year: 2019, 2020 2021, 2022, 2023, 2024 U.S. Department of Interior Compliance Requirement: Activities Allowed or Unallowed/Allowable Costs/Costs Principles Type of Finding: Material Weakness and Material Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Per Part 3 of the Compliance Supplement, costs must be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity in order to be allowable under federal awards. Further per 2 CFR section 200.502, the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as expenditure/expense transactions associated with grants. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testwork over Activities Allowed or Unallowed/Allowable Costs/Costs Principles, we identified the following: A. For 18 of 25 payroll and fringe benefit costs selected for testwork, we were unable to agree the payroll and fringe benefit costs charged to the Fish and Wildlife Cluster (the program) to the State of New Hampshire’s centralized accounting system, NH First. The New Hampshire Department of Fish and Game (the Department) does not charge payroll and fringe benefit costs incurred by the program as processed in NH First. Instead, the Department utilizes an internally calculated "federal rate" that is used to charge both payroll and fringe benefit costs based upon the number of hours worked to the program. As described by the Department, the federal rate is calculated based upon an employee's fringe benefits, the approved NH First pay rate, and the employee’s years of service. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 20 samples selected testwork as recorded in NH First, we were not able to reconcile this amount to what the Department actually charged the program. A variance of $9,754 was identified and included in the Questioned Cost amount below. B. For 5 of 25 payroll costs selected for testwork, we were unable to obtain support to substantiate the payroll costs recorded by the Department, including the Fish and Game Activity Task Report, which shows the Department's method of allocating time and payroll to the Cluster. As a result, we were unable to reconcile the amount paid in NH First of $11,541 to what the Department had allocated to the program. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 5 samples selected based upon what was recorded in NH First, we were not able to reconcile this amount to what the Department had actually charged the program. Since we were unable to determine what was charged to the program this amount is not a known questioned cost below. C. Indirect costs charged to the program are based upon the Department's "federal rate" calculation of payroll and fringe benefit costs as described above in Bullet A. As a result, we were unable to substantiate the basis upon which the indirect cost rate was applied for all 25 payroll periods for testwork. We further noted that for 2 of 25 payroll periods selected for testwork, the indirect costs drawn down at the time of grant close out in proportion to the payroll drawn down exceeded the 18.19% indirect cost rate that should be applied to payroll. A variance of $1,655 was identified and included in the Questioned Cost amount below. D. During our testwork over the allowability of non-payroll costs, we identified that for 2 of 60 invoices selected for testwork, the invoice was not approved by the Division Chief prior to payment as required. Of the 2 invoices, 1 invoice was approved by the program supervisor and 1 invoice did not contain any evidence of it being approved. While the invoices did not appear to be properly reviewed, the amount paid appeared to be properly supported and as such, no questioned costs were identified. Cause The cause of the condition found is that the Department does not utilize the NH First system as the basis to charge payroll, fringe and indirect costs to the program. As described in the condition found above, the Department performs its own calculation of what the payroll and fringe benefit costs are based upon the Department’s calculated federal rate and then subsequently data enters their calculated expenditure information into QuickBooks. The Department uses QuickBooks to track all federal expenditures under the program by individual federal grant. The Department does not perform any reconciliations to ensure what was entered into QuickBooks reconciles to the NH First system in order to verify that the data in QuickBooks is complete and accurate. In addition, the cause of the condition found related to the review and approval of non-payroll costs is primarily a result of insufficient internal controls in place to ensure all invoices are reviewed and approved prior to payment. Effect The effect of the condition found is that the Department would be unable to detect an error within the amounts data entered into QuickBooks and the amount allocated to the program could be inaccurate. In addition, insufficient review and approval of non-payroll expenditures could result in unallowable costs charged to the program. Questioned Costs: $11,409 Recommendation We recommend that the Department develop written policies and procedures that outline how payroll and fringe benefit costs are charged to the program and implement controls to ensure the amount of payroll and fringe benefits entered into QuickBooks properly reconciles to NH First as part of its routine payroll process. We also recommend that the Department implement internal controls to ensure that the correct indirect cost rate is utilized based upon the applicable time period for which indirect costs are being calculated. Finally, we recommend that the Department review its existing policies and procedures related to the review and approval of non-payroll expenditures to ensure that they are properly reviewed and approved prior to payment. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, the Department did not provide documentation to support that QuickBooks is reconciled to New Hampshire First to ensure that the data within QuickBooks is complete and accurate. Within Bullets B and C were unable to obtain documentation to support these transactions from the Department within a timely manner. As a result of our audit procedures, we identified questioned costs of $11,409. We further note that the NH First system does allow for the allocation of employee salaries to grants from the standard or normal accounting assignment of their costs. The Department has elected not to implement this model.
Finding Reference Number: 2024-006 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF00995-00, F22AF00929-00, F23AF03086-00, F22AF00514-01, F22AF02616-02, F19AF00556-01, F21AF04030-06, F22AF03670-01 Federal Award Year: 2019, 2021, 2022, 2023 U.S. Department of Interior Compliance Requirement: SEFA Reporting Type of Finding: Material Weakness and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR section 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition The New Hampshire Fish and Game Department (the Department) oversees 25 different grants funded under the Fish and Wildlife Cluster (the Program). To assist in the management of the grants, the Department uses QuickBooks as their main system of books and records, rather than the State of New Hampshire’s centralized accounting system, NH First. The Department manually enters expenditure transactional data into QuickBooks and heavily relies on a number of excel tracking sheets to track expenditures, cash draws, and in-kind match earned for each of the 25 grants. During our testwork over the Program, we identified the following: A. For 2 of 25 grants, we identified that there were out of period costs that were included on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024. Specifically we identified the following: a. For 1 of the 2 grants, the Department, included $247,562 of the expenditures that were paid between March 17, 2017 and January 13, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. b. For the other 1 of 2 grants, the Department included $761 of expenditures that were paid on February 10, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. B. For 1 of 25 grants, the Department reported on the SEFA the amount reimbursed through the cash draw process as of June 30, 2024 rather than expenditures paid during that same period. As such, the amount reported on the June 30, 2024 SEFA was understated by $14,830. C. For 1 of 25 grants, we were unable to reconcile the amount reported on the SEFA. For the grant, the Department included $2,637,617 of expenditures on the June 30, 2024 SEFA. As part of our review of the expenditures reported, we were unable to recalculate the amount included by the Department. Based upon the total expenditures incurred during the period ending June 30, 2024, it appeared that the amount that should have been reported was $2,755,548. As such, it appeared that the June 30 2024 was understated by $117,931. D. For 5 of 5 grants that reported subrecipient pass through expenditures, it appeared that the Department reported pass-through expenditures on the SEFA that included both the state and federal share of the costs, resulting in the pass-through amount being overstated by $118,195. Cause The cause of the condition found appears to be related to the heavy reliance on manual spreadsheets and QuickBooks. The manual data entry into QuickBooks and the use of spreadsheets are susceptible to human error. As the Department does not have any internal controls in place to ensure the spreadsheets or QuickBooks reconcile to NH First, if there was an error in the data used by the Department, it would be difficult to detect. In addition, the Department incorrectly included prior period costs on the SEFA as it had been believed that since the costs had not previously been reported but were eligible for reimbursement should be included on the June 30, 2024 SEFA. Effect The effect of the condition found is that the expenditures and subrecipient pass through amounts were not accurately presented on the SEFA. Questioned Costs: Not determinable. Recommendation We recommend that the Department develop written policies and procedures and implement internal controls to ensure all spreadsheets utilized to manage the program reconcile to QuickBooks and that QuickBooks reconciles to NH first on a routine basis. The Department should also implement internal controls to evaluate the amounts reported on the SEFA to ensure that only current period expenditures that are eligible for reimbursement are reported on the SEFA. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, we were unable to obtain documentation that supported a reconciliation between QuickBooks and New Hampshire First was performed. The amounts reported on the SEFA by the Department for this program were not complete and accurate.
Finding Reference Number: 2024-007 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF02312-00, F21AF04100-02, F22AF02844-00, F24AF00586-00, F23AF02720-00, F21AF03886-03, F20AF11939-04, F23AF02954-00, F23AF02609-00, F23AF02714-01, F19AF00556-01, F19AF00556-01, F22AF03670-01, F19AF00556-01, F22AF02616-02, F22AF00514-01, F19AF00556-01, F21AF04030-06 Federal Award Year: 2019, 2020 2021, 2022, 2023, 2024 U.S. Department of Interior Compliance Requirement: Activities Allowed or Unallowed/Allowable Costs/Costs Principles Type of Finding: Material Weakness and Material Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Per Part 3 of the Compliance Supplement, costs must be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-federal entity in order to be allowable under federal awards. Further per 2 CFR section 200.502, the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as expenditure/expense transactions associated with grants. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testwork over Activities Allowed or Unallowed/Allowable Costs/Costs Principles, we identified the following: A. For 18 of 25 payroll and fringe benefit costs selected for testwork, we were unable to agree the payroll and fringe benefit costs charged to the Fish and Wildlife Cluster (the program) to the State of New Hampshire’s centralized accounting system, NH First. The New Hampshire Department of Fish and Game (the Department) does not charge payroll and fringe benefit costs incurred by the program as processed in NH First. Instead, the Department utilizes an internally calculated "federal rate" that is used to charge both payroll and fringe benefit costs based upon the number of hours worked to the program. As described by the Department, the federal rate is calculated based upon an employee's fringe benefits, the approved NH First pay rate, and the employee’s years of service. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 20 samples selected testwork as recorded in NH First, we were not able to reconcile this amount to what the Department actually charged the program. A variance of $9,754 was identified and included in the Questioned Cost amount below. B. For 5 of 25 payroll costs selected for testwork, we were unable to obtain support to substantiate the payroll costs recorded by the Department, including the Fish and Game Activity Task Report, which shows the Department's method of allocating time and payroll to the Cluster. As a result, we were unable to reconcile the amount paid in NH First of $11,541 to what the Department had allocated to the program. While we were able to recalculate the employee’s payroll and fringe benefit amounts for each of the 5 samples selected based upon what was recorded in NH First, we were not able to reconcile this amount to what the Department had actually charged the program. Since we were unable to determine what was charged to the program this amount is not a known questioned cost below. C. Indirect costs charged to the program are based upon the Department's "federal rate" calculation of payroll and fringe benefit costs as described above in Bullet A. As a result, we were unable to substantiate the basis upon which the indirect cost rate was applied for all 25 payroll periods for testwork. We further noted that for 2 of 25 payroll periods selected for testwork, the indirect costs drawn down at the time of grant close out in proportion to the payroll drawn down exceeded the 18.19% indirect cost rate that should be applied to payroll. A variance of $1,655 was identified and included in the Questioned Cost amount below. D. During our testwork over the allowability of non-payroll costs, we identified that for 2 of 60 invoices selected for testwork, the invoice was not approved by the Division Chief prior to payment as required. Of the 2 invoices, 1 invoice was approved by the program supervisor and 1 invoice did not contain any evidence of it being approved. While the invoices did not appear to be properly reviewed, the amount paid appeared to be properly supported and as such, no questioned costs were identified. Cause The cause of the condition found is that the Department does not utilize the NH First system as the basis to charge payroll, fringe and indirect costs to the program. As described in the condition found above, the Department performs its own calculation of what the payroll and fringe benefit costs are based upon the Department’s calculated federal rate and then subsequently data enters their calculated expenditure information into QuickBooks. The Department uses QuickBooks to track all federal expenditures under the program by individual federal grant. The Department does not perform any reconciliations to ensure what was entered into QuickBooks reconciles to the NH First system in order to verify that the data in QuickBooks is complete and accurate. In addition, the cause of the condition found related to the review and approval of non-payroll costs is primarily a result of insufficient internal controls in place to ensure all invoices are reviewed and approved prior to payment. Effect The effect of the condition found is that the Department would be unable to detect an error within the amounts data entered into QuickBooks and the amount allocated to the program could be inaccurate. In addition, insufficient review and approval of non-payroll expenditures could result in unallowable costs charged to the program. Questioned Costs: $11,409 Recommendation We recommend that the Department develop written policies and procedures that outline how payroll and fringe benefit costs are charged to the program and implement controls to ensure the amount of payroll and fringe benefits entered into QuickBooks properly reconciles to NH First as part of its routine payroll process. We also recommend that the Department implement internal controls to ensure that the correct indirect cost rate is utilized based upon the applicable time period for which indirect costs are being calculated. Finally, we recommend that the Department review its existing policies and procedures related to the review and approval of non-payroll expenditures to ensure that they are properly reviewed and approved prior to payment. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, the Department did not provide documentation to support that QuickBooks is reconciled to New Hampshire First to ensure that the data within QuickBooks is complete and accurate. Within Bullets B and C were unable to obtain documentation to support these transactions from the Department within a timely manner. As a result of our audit procedures, we identified questioned costs of $11,409. We further note that the NH First system does allow for the allocation of employee salaries to grants from the standard or normal accounting assignment of their costs. The Department has elected not to implement this model.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Criteria: The auditee must prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with § 200.502. See 2 CFR 300.510(b). The auditee must have records sufficient to identify of all Federal awards received and expended and the Federal programs under which they were received. Further, the auditee must maintain records that sufficiently identify the amount, source, and expenditure of Federal funds for federal awards. While auditors may assist with the compilation of the Schedule of Expenditures of Federal Awards, Statement on Auditing Standards 115 clarifies that an auditor may not be part of an auditee’s internal control. See 2 CFR 300.302. Proper internal controls over financial reporting include, but are not limited to, internal controls that identify misstatements in the SEFA and an adequate design of internal control over the preparation of the SEFA. Condition: We requested the Schedule of Expenditures of Federal Award (SEFA) just after beginning the audit. Initially, the District provided a worksheet summarizing the federal award billing indicating that the individual costs items were in these worksheets (the “Billing Worksheets”). We tested the Billing Worksheets against the SF 270s with very minor exception. We then used the details of transactions shown in the Billing Worksheets as a basis for selecting samples and began audit tests. Soon thereafter, the District provided a draft SEFA. We noted that the expenditures in the SEFA for the Cooperative Forestry Assistance program did not match the expenditures for this program on the Billing Worksheets. We requested a reconciliation, but the District was unable to provide a complete reconciliation. The amounts on the SEFA were later adjusted. However, the amounts for this program on the SEFA were never reconciled to the Billing Worksheets, which formed the basis of the billings to the Forest Service. Cause: This is a small District, which is not often subject the Single Audit requirements. Effect: In performing a Single Audit, we must, as the beginning task, analyze “major programs.” Without knowing federal expenditure amounts for the programs, analyzing “major programs” (meaning what programs must be audited) becomes very difficult. As well, before we can select a sample for testing, we must know the “population” or the details of transactions which are subject to testing. Not having the SEFA at the beginning of the audit and including the details of the individual transactions which total a specific program on the SEFA causes audit inefficiencies. Repeat Finding: No. Questioned Costs: No costs are questioned. Recommendation: We recommend that the District impose a procedure to require that the Billing Worksheets be reconciled to the QuickBooks general ledger on a monthly basis. Views of Responsible Officials: Management’s response is reported in “Management’s Response and Corrective Action Plan” included in a separate section at the end of this report.
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Finding 2024-005 – Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Education; United States Department of Agriculture Federal Programs Name: COVID-19 Education Stabilization Fund; Child Nutrition Cluster Federal Award Identification Number: AL No.: 84.425 D; 84.425 U; 10.553; 10.555; 10.559 Pass-Through Agency: Pennsylvania Department of Education Pass-Through Number(s): 264; 356; 362; 367 Award Period: 3/13/20 - 9/30/24 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Condition: During audit procedures, it was determined that the District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Questioned Costs: None Cause: The District did not perform their responsibilities under 2 CFR 200.510(a) and could not produce a schedule that accurately presented the federal awards expended during the fiscal year. Effect: There was no schedule prepared by the District during the fiscal year. Repeat Finding: No Recommendations: We recommend the following: - The District should establish policies and procedures to understand and accurately determine the source and breakdown of the commingled assistance received. - The District should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.