Preparation of Schedule of Expenditures of Federal Awards (SEFA) (repeat) Finding Type: Material Weakness in Internal Controls and Noncompliance (Reporting, Cash Management and Allowable Costs/Cost Principles) Federal Program: U.S. Department of Treasury – Coronavirus State and Local Fiscal Recovery Funds (AL #21.027) and Local Assistance and Tribal Consistency Fund (AL #21.032) Criteria: The Code of Federal Regulations (CFR) Section 200.303(b) requires non-Federal entities to 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 terms and conditions of the Federal award. CFR Section 200.502(a) states that the determination of when a Federal award is expended should be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the nonFederal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as expenditure/expense transactions associated with grant awards. The County reports expenditures on the SEFA when the expenditure has been incurred, or on the accrual basis of accounting, in accordance with generally accepted accounting principles. CFR Section 200.510(b) requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section 200.502(a), as stated above, and must reconcile amounts reported in the SEFA to the amounts reported in the auditee’s financial statements. Condition: The SEFA was not appropriately reconciled to federal grant revenues and expenditures recorded in the financial statements. Changes were made to major program expenditures, as well as expenditures of other programs, during the closing process and during the completion of the single audit to properly report expenditures on the SEFA. Closing procedures should be in place to reconcile grant expenditures incurred at year-end, confirm the amount as eligible with the grantor, claim the g ant revenues on a timely basis, reconcile the claim to the general ledger, and ensure the expenditures that will be claimed under federal awards are properly reported on the SEFA and audited financial statements prior to the start of the single audit. If expenditures reported on the SEFA are misstated, the County could fail to have a program appropriately identified as a major program and tested as a major program during the single audit. Failure to have a program audited during the single audit would result in noncompliance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Cause: Closing procedures were not in place and management did not effectively communicate with County departments responsible for administering federal awards to identify all federal grant related activity. Effect: The SEFA required material adjustments to include all federal expenditures prior to the single audit beginning, which resulted in a misstated preliminary SEFA and inefficiencies during the single audit. In addition, the lack of closing procedures resulted in audit delays which caused the 2022 and 2023 financial reporting process, including data collection form submission, to be untimely. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that management meet with department heads throughout the year and during the closing process to identify all expenditures under federal awards. Training should be provided to all staff to make sure they are aware of the importance of accurately reconciling and claiming grant expenditures on a timely basis and providing the information to management for inclusion on the SEFA. Views of Responsible Officials: The County will work to improve closing processes and communications with various departments to ensure the SEFA is complete and accurate.
Preparation of Schedule of Expenditures of Federal Awards (SEFA) (repeat) Finding Type: Material Weakness in Internal Controls and Noncompliance (Reporting, Cash Management and Allowable Costs/Cost Principles) Federal Program: U.S. Department of Treasury – Coronavirus State and Local Fiscal Recovery Funds (AL #21.027) and Local Assistance and Tribal Consistency Fund (AL #21.032) Criteria: The Code of Federal Regulations (CFR) Section 200.303(b) requires non-Federal entities to 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 terms and conditions of the Federal award. CFR Section 200.502(a) states that the determination of when a Federal award is expended should be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the nonFederal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as expenditure/expense transactions associated with grant awards. The County reports expenditures on the SEFA when the expenditure has been incurred, or on the accrual basis of accounting, in accordance with generally accepted accounting principles. CFR Section 200.510(b) requires the auditee to prepare a SEFA for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section 200.502(a), as stated above, and must reconcile amounts reported in the SEFA to the amounts reported in the auditee’s financial statements. Condition: The SEFA was not appropriately reconciled to federal grant revenues and expenditures recorded in the financial statements. Changes were made to major program expenditures, as well as expenditures of other programs, during the closing process and during the completion of the single audit to properly report expenditures on the SEFA. Closing procedures should be in place to reconcile grant expenditures incurred at year-end, confirm the amount as eligible with the grantor, claim the g ant revenues on a timely basis, reconcile the claim to the general ledger, and ensure the expenditures that will be claimed under federal awards are properly reported on the SEFA and audited financial statements prior to the start of the single audit. If expenditures reported on the SEFA are misstated, the County could fail to have a program appropriately identified as a major program and tested as a major program during the single audit. Failure to have a program audited during the single audit would result in noncompliance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Cause: Closing procedures were not in place and management did not effectively communicate with County departments responsible for administering federal awards to identify all federal grant related activity. Effect: The SEFA required material adjustments to include all federal expenditures prior to the single audit beginning, which resulted in a misstated preliminary SEFA and inefficiencies during the single audit. In addition, the lack of closing procedures resulted in audit delays which caused the 2022 and 2023 financial reporting process, including data collection form submission, to be untimely. Questioned Costs: No costs have been questioned as a result of this finding. Recommendation: We recommend that management meet with department heads throughout the year and during the closing process to identify all expenditures under federal awards. Training should be provided to all staff to make sure they are aware of the importance of accurately reconciling and claiming grant expenditures on a timely basis and providing the information to management for inclusion on the SEFA. Views of Responsible Officials: The County will work to improve closing processes and communications with various departments to ensure the SEFA is complete and accurate.
Assistance Listing, Federal Agency, and Program Name 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, CDBG Entitlement Grants Cluster Community Development Block Grant Federal Award Identification Number and Year N/A Pass through Entity ALN 14.218 Wayne County Finding Type Material weakness Repeat Finding Yes 2022 002 Criteria The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context During the fiscal year ended September 30, 2023, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $689,255. ALN 14.218 The expenditures reported on the SEFA were understated by $55,192. The errors noted above have been corrected on the SEFA as of September 30, 2023. Cause and Effect Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000 and, therefore, a single audit was not needed. Recommendation We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.
Assistance Listing, Federal Agency, and Program Name 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, CDBG Entitlement Grants Cluster Community Development Block Grant Federal Award Identification Number and Year N/A Pass through Entity ALN 14.218 Wayne County Finding Type Material weakness Repeat Finding Yes 2022 002 Criteria The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context During the fiscal year ended September 30, 2023, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $689,255. ALN 14.218 The expenditures reported on the SEFA were understated by $55,192. The errors noted above have been corrected on the SEFA as of September 30, 2023. Cause and Effect Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000 and, therefore, a single audit was not needed. Recommendation We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.
Assistance Listing Number, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants Public Assistance (FEMA) Federal Award Identification Number and Year - All grants under ALN Pass through Entity - Michigan Department of State Police Finding Type - Material weakness Repeat Finding - Yes 2022 004 Criteria - Per 2 CFR Section 200.510(b), 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 determined in accordance with Section 200.502. Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination. Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing Number, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants Public Assistance (FEMA) Federal Award Identification Number and Year - All grants under ALN Pass through Entity - Michigan Department of State Police Finding Type - Material weakness Repeat Finding - Yes 2022 004 Criteria - Per 2 CFR Section 200.510(b), 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 determined in accordance with Section 200.502. Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination. Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing Number, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants Public Assistance (FEMA) Federal Award Identification Number and Year - All grants under ALN Pass through Entity - Michigan Department of State Police Finding Type - Material weakness Repeat Finding - Yes 2022 004 Criteria - Per 2 CFR Section 200.510(b), 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 determined in accordance with Section 200.502. Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination. Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing Number, Federal Agency, and Program Name - ALN 97.036, U.S. Department of Homeland Security, Disaster Grants Public Assistance (FEMA) Federal Award Identification Number and Year - All grants under ALN Pass through Entity - Michigan Department of State Police Finding Type - Material weakness Repeat Finding - Yes 2022 004 Criteria - Per 2 CFR Section 200.510(b), 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 determined in accordance with Section 200.502. Condition - The FEMA expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the County expended approximately $122 million of federal funding. The funding was received by various departments within the County and from several federal and nonfederal entities. The County accumulates the financial data and other required information to complete the SEFA. The FEMA expenditures on the SEFA were understated by $2,449,502. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for FEMA, and, as a result, FEMA expenditures of $2,449,502 were added to the SEFA, impacting major program determination. Recommendation - The County should implement a process to ensure the FEMA expenditures reported on the SEFA are complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Training on FEMA reporting for the SEFA was requested and performed by our auditors. Fiscal year 2024 is the last year any FEMA obligations will happen. A full understanding of the reported amount has been noted.
Assistance Listing Number, Federal Agency, and Program Name - ALN 66.458, U.S. Environment Protection Agency Capitalization Grants for Clean Water State Revolving Funds (CWSRF) Federal Award Identification Number and Year - Project Number 5834 01 (2023) Pass through Entity - Michigan Department Environment, Great Lakes and Energy Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must prepare appropriate financial statements, including the schedule of expenditures of federal awards, in accordance with 200.510 financial statements. Per 2 CFR 200.510(b), 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 basis for determining federal awards expended. Condition - Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. If Questioned Costs Are Not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could Not Be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - The County did not initially include the funds received through the Capitalization Grants for Clean Water State Revolving Funds. Cause and Effect - The County did not have a process in place to identify all potential sources of federal funding received during the year, resulting in the SEFA being incomplete for the year ended September 30, 2023. Upon discovery of the error, the County prepared a SEFA that included the Capitalization Grants for Clean Water State Revolving Funds. This lack of controls resulted in the reissuance of the 2023 single audit. Recommendation - Management should implement controls to ensure all federal funding received is properly identified as such and included on the SEFA. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding as reported. The federal funding was not received until fiscal year 2023, while expenditures were incurred prior to fiscal year 2023. The timing of events contributed to the oversight on the 2023 SEFA. The County has reeducated staff on the preparation of the SEFA in order to prevent this error from reoccurring.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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 §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Assistance Listing Number, Federal Agency, and Program Name ALN 20.507, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year 20.507, fiscal year 2023 Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.510(b): 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 determined in accordance with §200.502. Condition The schedule of expenditures of federal awards (SEFA) was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context In fiscal year 2023, the Authority expended approximately $21.7 million of federal funding. The Authority accumulates the financial data and other required information to complete the SEFA. Due to lack of control on reviewing drawdowns after year end to ensure they are reported properly, an adjustment was identified by the auditors related to ALN 20.507 for approximately $1,500,000 that was improperly excluded from the original SEFA provided by the Authority to the auditors. Cause and Effect Controls in place to ensure the SEFA was complete and accurate were not effective. The error in the SEFA has been corrected. Recommendation The Authority should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. The Authority should also ensure completeness by reviewing drawdowns after year end to ensure that they are reported in the correct period on the SEFA. Views of Responsible Officials and Planned Corrective Actions Management would like to point out that this finding is related to Finding 2023 001. The accrual of additional grant invoices resulted in parallel updates to our SEFA schedule. Therefore, this finding is a direct result of Finding 2023 001. As an aside, our current process for SEFA reporting is manual. We are investing in a new accounting system, in which the SEFA information will not require manual intervention and, thus, will reduce any potential entry errors in the future.
Views of Responsible Officials - Management agrees with the finding. The Company will implement an additional review of projects created in the accounting system to ensure the reliance of the information to be reported under CFR §200.502.
Views of Responsible Officials - Management agrees with the finding. The Company will implement an additional review of projects created in the accounting system to ensure the reliance of the information to be reported under CFR §200.502.
Views of Responsible Officials - Management agrees with the finding. The Company will implement an additional review of projects created in the accounting system to ensure the reliance of the information to be reported under CFR §200.502.
Views of Responsible Officials - Management agrees with the finding. The Company will implement an additional review of projects created in the accounting system to ensure the reliance of the information to be reported under CFR §200.502.
Views of Responsible Officials - Management agrees with the finding. The Company will implement an additional review of projects created in the accounting system to ensure the reliance of the information to be reported under CFR §200.502.
Views of Responsible Officials - Management agrees with the finding. The Company will implement an additional review of projects created in the accounting system to ensure the reliance of the information to be reported under CFR §200.502.
Views of Responsible Officials - Management agrees with the finding. The Company will implement an additional review of projects created in the accounting system to ensure the reliance of the information to be reported under CFR §200.502.
Views of Responsible Officials - Management agrees with the finding. The Company will implement an additional review of projects created in the accounting system to ensure the reliance of the information to be reported under CFR §200.502.
2023-002 - Internal Controls Over Compliance and Compliance with Reporting - Preparation of the Schedule of Expenditures of Federal Awards Information on the Major Federal Program - Federal Agency: Department of Interior Program Name: National Park Service Second Century Endowment Assistance Listing Number: 15.U01 Award Number: H.R. 4680/P.L. 114-289 Award Period: October 1, 2022 to September 30, 2023 Criteria - The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “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 2 CFR Section 200.502 Basis for determining Federal awards expended.” The Schedule must provide total Federal awards expended for each individual Federal program. Condition – During the testing of the schedule of expenditures of federal awards (SEFA) for the National Park Service Second Century Endowment for the year-end September 30, 2023, we identified transactions totaling $1,848,493 which were improperly included in the SEFA. These expenditures were not incurred during the fiscal year and should not have been included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate reporting of expenditures to the SEFA. Effect or Potential Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Questioned Costs - None. Context - We reviewed the SEFA and found the exception as noted in the condition. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, the Foundation cannot provide reasonable assurance that the SEFA is fairly presented. See management’s response for further details. Views of Responsible Officials - Management agrees with this finding and recommendation. The Foundation’s management agrees with the finding and recommendation. The planned corrective actions are presented in the Foundation’s management’s corrective action plan attached as Appendix C.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also 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 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also 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 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also 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 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also 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 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also 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 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.
2023-002 – Internal Control over Compliance and Compliance with Period of Performance Information on the Major Federal Program - Federal Agency: United States Agency for International Development (USAID) Program Name: USAID Foreign Assistance for Program Overseas Assistance Listing Number: 98.001 Award Number: Various Award Period: Various Criteria – A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award, only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. Additionally, the Uniform Guidance in 2 CFR Section 200.344(b), states that unless the federal awarding agency or pass-through entity authorized an extension, a non-Federal entity must liquidate all financial obligations incurred under the Federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award. Further, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires the non-federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonable ensure compliance with Federal statutes, regulations, and other terms and conditions of the Federal Award. The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also 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 Basis for determining Federal awards expended.” The SEFA must provide total Federal awards expended for each individual Federal program. Condition – During our testing, we identified one (1) out of 40 sampled transactions was incurred outside the period of performance. Corus did not obtain written approval from the federal awarding agency for the specific project. As a result, total expenditure totaling $106,400 was improperly included in the SEFA. Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate charging of expenditures to the SEFA in the correct period. Questioned Costs - None. Context – This is a condition identified per review of Corus’ compliance with the specified requirements. Total expenditures of the specific project charged to the program was $106,400. These charges were removed from the SEFA presented for the year ended September 30, 2023. Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations. Repeat Finding - This is not a repeat finding. Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, Corus cannot provide reasonable assurance that the SEFA is fairly presented. We recommend management to strengthen its internal control to ensure complete and accurate SEFA. Views of Responsible Officials - Corus management agrees with the findings and recommendations. The planned corrective actions are presented in Corus management’s corrective action plan attached as Appendix B to the Single Audit Report.