Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
Federal Agency U.S. Department of Health and Human Services Criteria 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, 2 CFR section 200.510 requires the auditee to 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 as determined in accordance with 2 CFR section 200.502. Condition and Context In preparing the SEFA, Nemours management adjusted general ledger amounts for payroll adjustments recorded in the general ledger in fiscal year 2024 that related to fiscal year 2023 expenditures. These manual adjustments, were not material to the 2023 combined financial statements and related to correcting allocations of time and effort charged to federal grants. Through our allowability testing of payroll expenditures within the Research & Development Cluster, we determined the impact of these time and effort payroll corrections was not completely captured during the SEFA preparation process. As a result, adjustments to the SEFA were made of approximately $617,000. Possible Cause and Effect Because effort reporting changes were not timely identified and processed prior to the closing of the books and records for the fiscal year, there were payroll related changes impacting federal grants that were processed in the general ledger during 2024. As a result, management attempted to identify all of these changes and manually adjust the SEFA accordingly. Due to the manual nature of the process, a portion of the 2024 corrections which impacted the 2023 expenditures were not completely captured during the SEFA preparation process. Questioned Costs None Statistically Valid Sample Not applicable Repeat of Prior Finding No Recommendations Management should revise its process to ensure that effort reporting changes are timely identified and processed in the appropriate period. Additionally, should changes be identified subsequent to year end, the process to identify manual adjustments to the SEFA, if any, should be reviewed for completeness. View of Responsible Officials Management agrees with the noted finding. Management notes that all payroll adjustments were completed prior to reporting any final costs to the funding agencies.
2023-002 Material Weakness – Preparation of Schedule of Expenditures of Federal and State Awards (“SEFSA”) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee’s responsibility to prepare the Schedule of Expenditures of Federal and State Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate Schedule of Expenditures of Federal and State awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate Schedule of Expenditures of Federal and State awards financial statement for major program compliance. For CFDA #66.458, the SEFSA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFSA. Uniform Guidance states that SEFSA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2023. Recommendation: Procedures should be implemented to create a materially accurate Schedule of Expenditures of Federal and State award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFSA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate Schedule of Expenditures of Federal and State award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFSA.
2023-002 Material Weakness – Preparation of Schedule of Expenditures of Federal and State Awards (“SEFSA”) Statement Condition: Under Uniform Guidance 2 CFR Section 200.508 reporting compliance, it is the auditee’s responsibility to prepare the Schedule of Expenditures of Federal and State Awards statement. The Uniform Guidance 2 CFR Section 200.502 requires the proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cut-off and timely reporting to the Federal Audit Clearinghouse. Criteria: Procedures should be in place to create a materially accurate Schedule of Expenditures of Federal and State awards statement based on the cash basis of accounting specifically tracking expenses when they are paid. Cause: The procedures in place did not create a materially accurate Schedule of Expenditures of Federal and State awards financial statement for major program compliance. For CFDA #66.458, the SEFSA provided by the Authority did not represent expenditures as paid. This was a result of the bifurcation between loan and grant disbursements, as well as presentation of loan balances on the SEFSA. Uniform Guidance states that SEFSA loan balances should be reported as prior year outstanding loan balance plus current year borrowings. Effect: The fund used to track the expenditures did not properly reflect the federal expenditures incurred in 2023. Recommendation: Procedures should be implemented to create a materially accurate Schedule of Expenditures of Federal and State award financial statement, which should include ascertaining between loan and grant expenditures, and understanding the process for reporting loan balances on the SEFSA. Views of Responsible Officials and Planned Corrective Actions: In order to create a materially accurate Schedule of Expenditures of Federal and State award financial statement, the Authority will establish procedures to ascertain loan and grant expenditures, as well as taking into account the Uniform Guidance requirement for presenting loan balances on the SEFSA.
2023-004 – Schedule of Expenditures of Federal Awards Federal program information: Funding Agency: All major program funding agencies Title: All major programs Assistance Listing Number: All major program ALN’s Award Periods: All major program award periods Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502. Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Lastly, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances. Context: N/A Questioned Costs: None. Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA. Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis. Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information. Management Response: The Department will work with their accounting consultant to properly prepare the SEFA. The Department will verify all Assistance Listing Numbers and make all necessary adjustments prior to submitting the SEFA to the auditors.
2023-004 – Schedule of Expenditures of Federal Awards Federal program information: Funding Agency: All major program funding agencies Title: All major programs Assistance Listing Number: All major program ALN’s Award Periods: All major program award periods Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502. Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Lastly, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances. Context: N/A Questioned Costs: None. Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA. Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis. Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information. Management Response: The Department will work with their accounting consultant to properly prepare the SEFA. The Department will verify all Assistance Listing Numbers and make all necessary adjustments prior to submitting the SEFA to the auditors.
2023-004 – Schedule of Expenditures of Federal Awards Federal program information: Funding Agency: All major program funding agencies Title: All major programs Assistance Listing Number: All major program ALN’s Award Periods: All major program award periods Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502. Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Lastly, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances. Context: N/A Questioned Costs: None. Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA. Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis. Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information. Management Response: The Department will work with their accounting consultant to properly prepare the SEFA. The Department will verify all Assistance Listing Numbers and make all necessary adjustments prior to submitting the SEFA to the auditors.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Criteria Part 2, CFR 200, 200.510 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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.” Condition Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit. Cause of Condition The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance. Effect of Condition Noncompliance may impact future funding from Federal awards. Recommendation We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.
Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample Repeat Finding: Yes (2022-002) Finding Type: Material Weakness, Material Noncompliance Criteria Reporting Per 2 CFR 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 pertains to events that require the non Federal statutes, regulations and the terms and conditions of Federal awards, such as: expenditures/expense transactions associated with awards including grants. Further, the Uniform Guidance compliance supplement notes, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the Federal awarding agency. In accordance with the grant agreement and the reporting requirements for the State of New Jersey Department of Community Affairs, direct grants and pass through funds are fulfilled utilizing an advanced payment method and tracking reports. The grantee shall submit quarterly financial reports, in a format to be provided by the Department, and including the number of government full time employees responding to COVID 19 as supported by this funding. The reports are prepared and submitted to allow for relevant and reliable information to be provided to the Federal government or State of New Jersey for tracking purposes. The reports are the source documents for the grantee to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the grantee’s financial statements in accordance with 2 CFR 200.502, Basis for determining Federal awards expended, for the SEFA. Procurement Non Federal entities other than states, including those operating Federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. A non Federal entity must: 1. Meet the general procurement standards in 2 CFR section 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. 2. Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR section 200.319. 3. Use the micro purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR sections 200.320(a) (1) and (2). Under the micro purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis Bacon Act)). Small purchase procedures are used for purchases that exceed the micro purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro purchases may be awarded without soliciting competitive quotations if the non Federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). In accordance with the grant agreement and the reporting requirements for the State of New Jersey Department of Community Affairs, recipients may use award funds to enter into contracts to procure goods and services necessary to implement one or more of the eligible purposes outlined in sections 602(c) and 603(c) of the Act and Treasury’s Interim Final Rule and Final Rule. As such, recipients are expected to have procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance. Under the program, St. Joseph’s Health, Inc. must follow the procurement standards in 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. Internal Control Additionally, in accordance with Federal requirements, a non Federal entity shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context Reporting On a quarterly basis, St. Joseph’s Health, Inc. (the System) prepares and reports to New Jersey Department of Community Affairs (the Department) the program expenditures for Federal funding amounts on the tracking report of expenditures, which are then used to prepare the annual SEFA in conjunction with the general ledger detail at the end of the fiscal year. While expenditures per the SEFA as prepared by the System were accurate and the quarterly reporting was accepted by the State, the System’s expenditures per the report of expenditures were based upon purchase order amounts, which include expenditures that were incurred subsequent to year end. Procurement Further, the System engaged multiple vendors for several projects under the G2022 09 grant that were above the $10K micro purchase threshold, but below the simplified acquisition threshold. However, the System did not obtain multiple quotes from different vendors to encourage fair competition in the market. The System’s policies and procedures to ensure compliance with the above compliance requirements did not include certain internal controls that were designed properly and operating effectively to ensure that the System properly reported costs on the report of expenditures or obtained the necessary quotes from potential bidders for procurements over the micro purchase threshold. Cause Management’s review of the submitted quarterly report of expenditures did not identify the need for a reconciliation of incurred expenditures and purchase order balances reported to the Department and as such, as there is a variance between the amounts reported on the SEFA and the amounts reported to the Department on the quarterly reports of approximately $458 thousand. We noted, however that this variance did not represent any unallowable costs. Additionally, Management did not retain or obtain the required documentation indicating quotes from multiple vendors were obtained for the ongoing construction projects under the grant. Effect The System had a material variance in the amount of expenditures reported to the Department as compared to the SEFA and did not obtain multiple quotations from vendors when making selections for various projects ongoing under the Federal program. Questioned Costs None Recommendation Reporting We recommend that the System strengthen its processes and internal controls to ensure the tracking of each report of expenditures provided to the Department has a reconciliation of the amount of expenditures incurred in the period based upon the general ledger and accounting records, used to prepare the annual SEFA, as compared to the purchase order balances. Procurement We recommend that the System strengthen its processes and internal controls to ensure that all procurement related transactions are supported by the appropriate bidding documentation as required by the Uniform Guidance for each respective bidding threshold. View of Responsible Official Management agrees with the auditor's recommendations and will strengthen its processes and internal controls to ensure the report of expenditures provided to the Department has a reconciliation of the amount of expenditures incurred in the period compared to the purchase order balances and all procurement transactions contain the required bidding documentation fro each bidding threshold in accordance with the Uniform Guidance.
Assistance Listing, Federal Agency, and Program Name - 93.493, Congressional Directives Federal Award Identification Number and Year - 2023 Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria - The Uniform Guidance requires organizations to properly reflect federal expenditures in the schedule of expenditures of federal awards (SEFA), as determined by 2 CFR 200.502. Condition - The total amount of expenditures originally reported on the SEFA excluded $1,024,472 of expenditures related to the Congressional Directives program. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - All of the expenditures that were incurred related to the Congressional Directives program were originally excluded from the SEFA. The adjustment resulted in an additional major program. Although the SEFA was originally incorrect, the SEFA was corrected after this error was noted by the auditor. Cause and Effect - Internal control procedures over determining the correct amount of expenditures to record on the SEFA did not operate effectively. This resulted in an adjustment to the schedule of expenditures of federal awards. Recommendation - Internal control procedures should continue to be enforced to ensure the proper expenditures are reported in the schedule of federal awards. Views of Responsible Officials and Corrective Action Plan - Livingston County, Michigan will implement a review process going forward to ensure all expenses fall within the grant period.
Criteria: The Code of Federal Regulations (CFR) Section 200.510(b) states in part, “The auditee must also prepare a schedule of federal expenditures for the period covered by the auditee’s consolidated financial statements which must include the total Federal awards expended as determined in accordance with 200.502.” Condition: During our review of the December 31, 2023 Schedule of Expenditures of Federal Awards (SEFA) prepared by management, we noted that controls over the preparation of the SEFA were not properly designed resulting in adjustments to the SEFA for amounts passed through to subrecipients that were identified during the audit. Questioned Costs: N/A Cause and Effect: Internal controls over preparation of the SEFA are not operating effectively to ensure accuracy of the final SEFA. As a result of the condition noted above, certain adjustments were required to be made to the final SEFA. Recommendation: We recommend management review current internal controls over preparation and tracking of federal expenditures to ensure that all federal awards are captured and reported in the correct period and that internal controls are properly designed to detect and correct errors to the SEFA. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Criteria: The Code of Federal Regulations (CFR) Section 200.510(b) states in part, “The auditee must also prepare a schedule of federal expenditures for the period covered by the auditee’s consolidated financial statements which must include the total Federal awards expended as determined in accordance with 200.502.” Condition: During our review of the December 31, 2023 Schedule of Expenditures of Federal Awards (SEFA) prepared by management, we noted that controls over the preparation of the SEFA were not properly designed resulting in adjustments to the SEFA for amounts passed through to subrecipients that were identified during the audit. Questioned Costs: N/A Cause and Effect: Internal controls over preparation of the SEFA are not operating effectively to ensure accuracy of the final SEFA. As a result of the condition noted above, certain adjustments were required to be made to the final SEFA. Recommendation: We recommend management review current internal controls over preparation and tracking of federal expenditures to ensure that all federal awards are captured and reported in the correct period and that internal controls are properly designed to detect and correct errors to the SEFA. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Agriculture (USDA) Program: National Bioterrorism Hospital Preparedness Program (ALN 93.889); Immunization Cooperative Agreements (ALN 93. 268); COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)(ALN 93. 323); Child Support Services (ALN 93. 563); State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (ALN 10.561) Pass-through Entity: Minnesota Department of Health; Minnesota Department of Human Services Federal Assistance Identification Number or Pass-Through Number: U90TP000529; 6NH23P0007370502; NH23P922628; NH23IP922628; NU50CK000508; 2001MNCEST; 2101MNCSES; 212MN127Q7503; 212MN101S2520; 212MN101S2514 Federal Award Year: Year ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matter Compliance Finding Criteria: 2 CFR 200.303(a) requires that each non-Federal entity must "Establish and maintain effective internal control over the Federal award that provides 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." 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards awards (the “schedule”) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with ss 200.502... ...At minimum, the schedule must... ...(3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available…” Condition: While testing the SEFA, we noted that internal controls were not operating effectively over the preparation of the SEFA. In addition, we noted the following errors in the original SEFA we received for the audit: - $1,284,631 of expenditures were improperly included in ALN 93.889 when the amount should have been included in ALN 93.268. - $30,394 of expenditures was improperly included in ALN 93.889 when the amount should have been included in ALN 93.323. - $626,894 of expenditures related to ALN 93.563 was missing from the schedule. - $61,290 of expenditures related to ALN 10.561 was missing from the schedule. Cause: The errors of $1,284,631 and $30,394 related to ALN 93.889 were caused by the county hospital’s system of assigning identifying numbers within the chart of accounts not being applied to awards managed outside of the Hennepin Health Foundation. The errors of $626,894 related to ALN 93.563 and $61,290 related to ALN 10.561 related to the County’s reducing expenditures by a reversal of a prior year receivable transaction when determining the amount of expenditures. Effect: The errors in the preparation of the SEFA indicate noncompliance with the requirements for the Schedule, including ensuring that it is complete and accurate. Context: Approximately $2 million of errors were noted over the SEFA with total expenditures of approximately $360 million. Questioned Costs: None Repeat Finding?: No Recommendation: We recommend that the County strengthen its processes and controls over the preparation of the SEFA. Views of Responsible Officials: Hennepin County has reviewed and agrees with the finding and the recommendation.
Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Agriculture (USDA) Program: National Bioterrorism Hospital Preparedness Program (ALN 93.889); Immunization Cooperative Agreements (ALN 93. 268); COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)(ALN 93. 323); Child Support Services (ALN 93. 563); State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (ALN 10.561) Pass-through Entity: Minnesota Department of Health; Minnesota Department of Human Services Federal Assistance Identification Number or Pass-Through Number: U90TP000529; 6NH23P0007370502; NH23P922628; NH23IP922628; NU50CK000508; 2001MNCEST; 2101MNCSES; 212MN127Q7503; 212MN101S2520; 212MN101S2514 Federal Award Year: Year ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matter Compliance Finding Criteria: 2 CFR 200.303(a) requires that each non-Federal entity must "Establish and maintain effective internal control over the Federal award that provides 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." 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards awards (the “schedule”) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with ss 200.502... ...At minimum, the schedule must... ...(3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available…” Condition: While testing the SEFA, we noted that internal controls were not operating effectively over the preparation of the SEFA. In addition, we noted the following errors in the original SEFA we received for the audit: - $1,284,631 of expenditures were improperly included in ALN 93.889 when the amount should have been included in ALN 93.268. - $30,394 of expenditures was improperly included in ALN 93.889 when the amount should have been included in ALN 93.323. - $626,894 of expenditures related to ALN 93.563 was missing from the schedule. - $61,290 of expenditures related to ALN 10.561 was missing from the schedule. Cause: The errors of $1,284,631 and $30,394 related to ALN 93.889 were caused by the county hospital’s system of assigning identifying numbers within the chart of accounts not being applied to awards managed outside of the Hennepin Health Foundation. The errors of $626,894 related to ALN 93.563 and $61,290 related to ALN 10.561 related to the County’s reducing expenditures by a reversal of a prior year receivable transaction when determining the amount of expenditures. Effect: The errors in the preparation of the SEFA indicate noncompliance with the requirements for the Schedule, including ensuring that it is complete and accurate. Context: Approximately $2 million of errors were noted over the SEFA with total expenditures of approximately $360 million. Questioned Costs: None Repeat Finding?: No Recommendation: We recommend that the County strengthen its processes and controls over the preparation of the SEFA. Views of Responsible Officials: Hennepin County has reviewed and agrees with the finding and the recommendation.
Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Agriculture (USDA) Program: National Bioterrorism Hospital Preparedness Program (ALN 93.889); Immunization Cooperative Agreements (ALN 93. 268); COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)(ALN 93. 323); Child Support Services (ALN 93. 563); State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (ALN 10.561) Pass-through Entity: Minnesota Department of Health; Minnesota Department of Human Services Federal Assistance Identification Number or Pass-Through Number: U90TP000529; 6NH23P0007370502; NH23P922628; NH23IP922628; NU50CK000508; 2001MNCEST; 2101MNCSES; 212MN127Q7503; 212MN101S2520; 212MN101S2514 Federal Award Year: Year ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matter Compliance Finding Criteria: 2 CFR 200.303(a) requires that each non-Federal entity must "Establish and maintain effective internal control over the Federal award that provides 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." 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards awards (the “schedule”) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with ss 200.502... ...At minimum, the schedule must... ...(3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available…” Condition: While testing the SEFA, we noted that internal controls were not operating effectively over the preparation of the SEFA. In addition, we noted the following errors in the original SEFA we received for the audit: - $1,284,631 of expenditures were improperly included in ALN 93.889 when the amount should have been included in ALN 93.268. - $30,394 of expenditures was improperly included in ALN 93.889 when the amount should have been included in ALN 93.323. - $626,894 of expenditures related to ALN 93.563 was missing from the schedule. - $61,290 of expenditures related to ALN 10.561 was missing from the schedule. Cause: The errors of $1,284,631 and $30,394 related to ALN 93.889 were caused by the county hospital’s system of assigning identifying numbers within the chart of accounts not being applied to awards managed outside of the Hennepin Health Foundation. The errors of $626,894 related to ALN 93.563 and $61,290 related to ALN 10.561 related to the County’s reducing expenditures by a reversal of a prior year receivable transaction when determining the amount of expenditures. Effect: The errors in the preparation of the SEFA indicate noncompliance with the requirements for the Schedule, including ensuring that it is complete and accurate. Context: Approximately $2 million of errors were noted over the SEFA with total expenditures of approximately $360 million. Questioned Costs: None Repeat Finding?: No Recommendation: We recommend that the County strengthen its processes and controls over the preparation of the SEFA. Views of Responsible Officials: Hennepin County has reviewed and agrees with the finding and the recommendation.
Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Agriculture (USDA) Program: National Bioterrorism Hospital Preparedness Program (ALN 93.889); Immunization Cooperative Agreements (ALN 93. 268); COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)(ALN 93. 323); Child Support Services (ALN 93. 563); State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (ALN 10.561) Pass-through Entity: Minnesota Department of Health; Minnesota Department of Human Services Federal Assistance Identification Number or Pass-Through Number: U90TP000529; 6NH23P0007370502; NH23P922628; NH23IP922628; NU50CK000508; 2001MNCEST; 2101MNCSES; 212MN127Q7503; 212MN101S2520; 212MN101S2514 Federal Award Year: Year ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matter Compliance Finding Criteria: 2 CFR 200.303(a) requires that each non-Federal entity must "Establish and maintain effective internal control over the Federal award that provides 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." 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards awards (the “schedule”) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with ss 200.502... ...At minimum, the schedule must... ...(3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available…” Condition: While testing the SEFA, we noted that internal controls were not operating effectively over the preparation of the SEFA. In addition, we noted the following errors in the original SEFA we received for the audit: - $1,284,631 of expenditures were improperly included in ALN 93.889 when the amount should have been included in ALN 93.268. - $30,394 of expenditures was improperly included in ALN 93.889 when the amount should have been included in ALN 93.323. - $626,894 of expenditures related to ALN 93.563 was missing from the schedule. - $61,290 of expenditures related to ALN 10.561 was missing from the schedule. Cause: The errors of $1,284,631 and $30,394 related to ALN 93.889 were caused by the county hospital’s system of assigning identifying numbers within the chart of accounts not being applied to awards managed outside of the Hennepin Health Foundation. The errors of $626,894 related to ALN 93.563 and $61,290 related to ALN 10.561 related to the County’s reducing expenditures by a reversal of a prior year receivable transaction when determining the amount of expenditures. Effect: The errors in the preparation of the SEFA indicate noncompliance with the requirements for the Schedule, including ensuring that it is complete and accurate. Context: Approximately $2 million of errors were noted over the SEFA with total expenditures of approximately $360 million. Questioned Costs: None Repeat Finding?: No Recommendation: We recommend that the County strengthen its processes and controls over the preparation of the SEFA. Views of Responsible Officials: Hennepin County has reviewed and agrees with the finding and the recommendation.
Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Agriculture (USDA) Program: National Bioterrorism Hospital Preparedness Program (ALN 93.889); Immunization Cooperative Agreements (ALN 93. 268); COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)(ALN 93. 323); Child Support Services (ALN 93. 563); State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (ALN 10.561) Pass-through Entity: Minnesota Department of Health; Minnesota Department of Human Services Federal Assistance Identification Number or Pass-Through Number: U90TP000529; 6NH23P0007370502; NH23P922628; NH23IP922628; NU50CK000508; 2001MNCEST; 2101MNCSES; 212MN127Q7503; 212MN101S2520; 212MN101S2514 Federal Award Year: Year ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matter Compliance Finding Criteria: 2 CFR 200.303(a) requires that each non-Federal entity must "Establish and maintain effective internal control over the Federal award that provides 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." 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards awards (the “schedule”) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with ss 200.502... ...At minimum, the schedule must... ...(3) Provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available…” Condition: While testing the SEFA, we noted that internal controls were not operating effectively over the preparation of the SEFA. In addition, we noted the following errors in the original SEFA we received for the audit: - $1,284,631 of expenditures were improperly included in ALN 93.889 when the amount should have been included in ALN 93.268. - $30,394 of expenditures was improperly included in ALN 93.889 when the amount should have been included in ALN 93.323. - $626,894 of expenditures related to ALN 93.563 was missing from the schedule. - $61,290 of expenditures related to ALN 10.561 was missing from the schedule. Cause: The errors of $1,284,631 and $30,394 related to ALN 93.889 were caused by the county hospital’s system of assigning identifying numbers within the chart of accounts not being applied to awards managed outside of the Hennepin Health Foundation. The errors of $626,894 related to ALN 93.563 and $61,290 related to ALN 10.561 related to the County’s reducing expenditures by a reversal of a prior year receivable transaction when determining the amount of expenditures. Effect: The errors in the preparation of the SEFA indicate noncompliance with the requirements for the Schedule, including ensuring that it is complete and accurate. Context: Approximately $2 million of errors were noted over the SEFA with total expenditures of approximately $360 million. Questioned Costs: None Repeat Finding?: No Recommendation: We recommend that the County strengthen its processes and controls over the preparation of the SEFA. Views of Responsible Officials: Hennepin County has reviewed and agrees with the finding and the recommendation.