Finding 2022-003 ? Significant Deficiency Assistance Listing: 93.591, Family Violence Prevention and Services/State Domestic Violence Coalitions Federal Grantor: U.S. Department of Health and Human Services Compliance Requirement: Other Condition: Expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.510(b) states, ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with ?200.502 Basis for determining Federal awards expended.? Internal controls over the SEFA should be in place to ensure accrual basis expenses incurred under federal programs are appropriately reported as expenses on the SEFA and are appropriately reported as revenue in the financial statements prior to the single audit. Cause: The Partnership failed to prepare its Audited Financial Statements and SEFA in a timely manner due to the loss of its key accounting staff near the single audit deadline and the time it took to hire a contract accounting firm to prepare for the financial statement and single audit. Also, some expenses reported on the SEFA was not reported in the general ledger grouping for ?funders? used to separate revenues and expenses for the federal grants and were instead reported in the grouping used for unallocated operating expenses. Effect: Adjustments were needed to properly report expenses on the SEFA and make the expenses agree to federal revenues in the financial statements. If expenses are not properly reported on the SEFA prior to the start of the single audit, the auditor could omit expenses for testing or select the wrong program for testing as a major program during the single audit, which would result in the Partnership?s single audit not complying with audit standards. Recommendation: The Partnership should work with its external accounting firm to ensure the SEFA is complete and accurate and expenses agree to federal revenues reported and ensure revenues and expenses for each federal grant are included in the appropriate grouping code for the grant so revenues and expenses claimed are accounted for separately in the general ledger. Management?s Response: Management?s response to the finding is discussed in the attached Corrective Action Plan.
Federal Program Information: Schedule of Expenditures of Federal Awards (Various ALN #?s) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Reporting- The auditee must prepare a schedule of expenditures of Federal awards (the ?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 200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For Research and Development (?R&D?), total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the passthrough entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listing number or other identifying number when the Assistance Listing information is not available. For a cluster of programs also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in 2 CFR 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in 2 CFR 200.414. Condition: The SEFA as prepared by management did not originally include one federal grant with federal expenditures to be reported within the 2022 SEFA. Cause: Lack of administrative oversight and insufficient internal controls with respect to preparation of the SEFA. Effect: The original draft SEFA was incomplete. Questioned Costs: None. Context: The original draft SEFA was incomplete. Identification as a Repeat Finding: This is a repeat finding of prior year finding 2021-001. Recommendation: We recommend the College enhance its procedures and internal controls with respect to preparation and review of the SEFA. Views of Responsible Officials and Planned Corrective Actions: The grant included in the finding was received from a local government entity which did not communicate any reporting requirements associated with the grant. The College will be more vigilant in future years in assessing any grants received for inclusion on the SEFA.
Finding 2022-001 Preparation of Schedule of Expenditures of Federal Awards Programs: U.S. Department of Agriculture -ALN: 10.760 Program Title: Water and Waste Disposal Systems for Rural Communities Criteria: The Schedule of Expenditures of Federal Awards is a supplemental schedule to the financial statements required to be produced when the entity is subject to a single audit. The single audit requirement is triggered when the federal expenditures reported on the Schedule of Expenditures of Federal Awards exceed $750,000 or more within an entity's fiscal year. Uniform Guidance 2 CFR ?200.510(b) states "The auditee must 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." Condition: For the fiscal year ended June 30, 2022, the City kept records of all expenditures and receipts of funding from drawdown requests together with support of payments and deposits of funds related to all federal expenditures but did not present those expenditures correctly or completely on a Schedule of Expenditure of Federal Awards as required by Uniform Guidance 2 CFR ?200.510(b). Effect: An accurate representation of total federal expenditures for the fiscal year is required to clearly identify federal expenditures for the audit period. The absence of a complete and accurate Schedule of Expenditures of Federal Awards for the audit period is noncompliant with the requirements set forth under Uniform Guidance 2 CFR ?200.510(b) but does not constitute a significant deficiency or material weakness in internal control over compliance. Questioned Costs: None reported. Recommendation: The City should implement a policy requiring entry of any federal expenditures to the Schedule of Expenditures of Federal Awards as part of the drawdown or pay request processes when submitting expenditures to the Federal Agency or Pass-through Entity providing funding. The procedures should be followed consistently to ensure that federal funds are appropriately accounted for and clearly identifiable for the period in which they occurred. The City of Cave Spring will refer to the compliance requirements of Title 2 U.S. Code of Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, and ensure the City meets the minimum Schedule of Expenditures of Federal Awards requirements as described in 2 CFR ?200.510(b).
Reference Number: 2022-018 Prior Year Finding: 2021-013 Federal Agency: Department of the Treasury State Agency: Department of Finance and Management (Finance) Federal Program: COVID-19 ? Coronavirus Relief Fund COVID-19 ? Emergency Rental Assistance COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.019, 21.023, 21.027 Award Number and Year: SLT0049 (2020), SLT0083 (2020) ERA0029 (2021), ERAE0054 (2021), ERAE1023 (2021) SLFRP4407 (2021), SLFRP4563 (2021), SLFRP4453 (2021-2022) Compliance Requirement: Reporting: Schedule of Expenditures of Federal Awards Type of Finding Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: Per 2 CFR 200 Section 510(b), the auditee must 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 Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. The schedule must also include the total amount provided to subrecipients from each Federal program. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA) submitted to auditors, including errors in both total expenditures and the amount provided to subrecipients. Context: The following SEFA reporting errors were noted during audit test work: 1. The amount provided to subrecipients under assistance listing 21.023 ? Emergency Rental Assistance was understated by $118.8 million, or 99%. The amount originally reported was $1.3 million but during audit test work it was determined that this amount should have been $120.1 million. 2. The amount provided to subrecipients under assistance listing 21.027 ? Coronavirus State and Local Fiscal Recovery Funds was understated by $77.3 million, or 89%. The amount originally reported was $9.7 million but during audit test work it was determined that this amount should have been $87 million. 3. Total expenditures reported under assistance listing 21.027 ? Coronavirus State and Local Fiscal Recovery Funds were overstated by $6.2 million, or 6%. The amount originally reported was $107.8 million but during audit test work it was determined that this amount should have been $101.6 million. The original reported amount included duplicate expenditures of approximately $6 million. 4. The amount provided to subrecipients under assistance listing 21.019 ? Coronavirus Relief Fund could not be verified. During the prior year?s audit, significant reporting errors were noted in the amount provided to subrecipients. During the current year?s audit, Finance indicated that it had not yet fully implemented the FY 2021 corrective action plan for this issue and, as a result, it was unable to verify the accuracy of the amount reported as provided to subrecipients during FY 2022. Questioned costs: Undetermined. Cause: Individual State agencies/departments prepare their own sections of the SEFA and submit them to Finance which compiles the State?s consolidated report. Procedures and internal controls were not sufficient to ensure that expenditures reported by Finance on the SEFA were accurate and were supported by detail expenditure transactions recorded in the State?s accounting system. On the initial SEFA submitted to auditors, approximately $6 million had been duplicated in total expenditures under 21.027 - Coronavirus State and Local Fiscal Recovery Funds. Payments to subrecipients under Emergency Rental Assistance and Coronavirus State and Local Fiscal Recovery Funds were improperly coded in the State?s accounting system which caused them to be excluded when the SEFA was initially prepared. Further, the prior year?s corrective action plan had not been fully implemented to allow Finance to verify the accuracy of the amount reported as provided to subrecipients under the Coronavirus Relief Fund during FY 2022. Effect: The amount provided to subrecipients was incorrectly reported on the SEFA submitted to auditors which effected testing of subrecipient monitoring for the programs. Recommendation: We recommend that Finance improve its SEFA compilation process to ensure that program expenditures and the amounts provided to subrecipients reported on the State?s SEFA are complete and accurate. We further recommend that Finance work with the State?s agencies and departments to review and enhance procedures and controls to ensure that subrecipient payments are accurately recorded in the State?s accounting system and that expenditure information submitted to Finance for inclusion on the State?s SEFA is accurate and ties to detail expenditure transactions in the State?s accounting system. Views of responsible officials: Management agrees with the finding.
Reference Number: 2022-018 Prior Year Finding: 2021-013 Federal Agency: Department of the Treasury State Agency: Department of Finance and Management (Finance) Federal Program: COVID-19 ? Coronavirus Relief Fund COVID-19 ? Emergency Rental Assistance COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.019, 21.023, 21.027 Award Number and Year: SLT0049 (2020), SLT0083 (2020) ERA0029 (2021), ERAE0054 (2021), ERAE1023 (2021) SLFRP4407 (2021), SLFRP4563 (2021), SLFRP4453 (2021-2022) Compliance Requirement: Reporting: Schedule of Expenditures of Federal Awards Type of Finding Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: Per 2 CFR 200 Section 510(b), the auditee must 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 Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. The schedule must also include the total amount provided to subrecipients from each Federal program. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA) submitted to auditors, including errors in both total expenditures and the amount provided to subrecipients. Context: The following SEFA reporting errors were noted during audit test work: 1. The amount provided to subrecipients under assistance listing 21.023 ? Emergency Rental Assistance was understated by $118.8 million, or 99%. The amount originally reported was $1.3 million but during audit test work it was determined that this amount should have been $120.1 million. 2. The amount provided to subrecipients under assistance listing 21.027 ? Coronavirus State and Local Fiscal Recovery Funds was understated by $77.3 million, or 89%. The amount originally reported was $9.7 million but during audit test work it was determined that this amount should have been $87 million. 3. Total expenditures reported under assistance listing 21.027 ? Coronavirus State and Local Fiscal Recovery Funds were overstated by $6.2 million, or 6%. The amount originally reported was $107.8 million but during audit test work it was determined that this amount should have been $101.6 million. The original reported amount included duplicate expenditures of approximately $6 million. 4. The amount provided to subrecipients under assistance listing 21.019 ? Coronavirus Relief Fund could not be verified. During the prior year?s audit, significant reporting errors were noted in the amount provided to subrecipients. During the current year?s audit, Finance indicated that it had not yet fully implemented the FY 2021 corrective action plan for this issue and, as a result, it was unable to verify the accuracy of the amount reported as provided to subrecipients during FY 2022. Questioned costs: Undetermined. Cause: Individual State agencies/departments prepare their own sections of the SEFA and submit them to Finance which compiles the State?s consolidated report. Procedures and internal controls were not sufficient to ensure that expenditures reported by Finance on the SEFA were accurate and were supported by detail expenditure transactions recorded in the State?s accounting system. On the initial SEFA submitted to auditors, approximately $6 million had been duplicated in total expenditures under 21.027 - Coronavirus State and Local Fiscal Recovery Funds. Payments to subrecipients under Emergency Rental Assistance and Coronavirus State and Local Fiscal Recovery Funds were improperly coded in the State?s accounting system which caused them to be excluded when the SEFA was initially prepared. Further, the prior year?s corrective action plan had not been fully implemented to allow Finance to verify the accuracy of the amount reported as provided to subrecipients under the Coronavirus Relief Fund during FY 2022. Effect: The amount provided to subrecipients was incorrectly reported on the SEFA submitted to auditors which effected testing of subrecipient monitoring for the programs. Recommendation: We recommend that Finance improve its SEFA compilation process to ensure that program expenditures and the amounts provided to subrecipients reported on the State?s SEFA are complete and accurate. We further recommend that Finance work with the State?s agencies and departments to review and enhance procedures and controls to ensure that subrecipient payments are accurately recorded in the State?s accounting system and that expenditure information submitted to Finance for inclusion on the State?s SEFA is accurate and ties to detail expenditure transactions in the State?s accounting system. Views of responsible officials: Management agrees with the finding.
Reference Number: 2022-018 Prior Year Finding: 2021-013 Federal Agency: Department of the Treasury State Agency: Department of Finance and Management (Finance) Federal Program: COVID-19 ? Coronavirus Relief Fund COVID-19 ? Emergency Rental Assistance COVID-19 ? Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.019, 21.023, 21.027 Award Number and Year: SLT0049 (2020), SLT0083 (2020) ERA0029 (2021), ERAE0054 (2021), ERAE1023 (2021) SLFRP4407 (2021), SLFRP4563 (2021), SLFRP4453 (2021-2022) Compliance Requirement: Reporting: Schedule of Expenditures of Federal Awards Type of Finding Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: Per 2 CFR 200 Section 510(b), the auditee must 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 Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. The schedule must also include the total amount provided to subrecipients from each Federal program. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA) submitted to auditors, including errors in both total expenditures and the amount provided to subrecipients. Context: The following SEFA reporting errors were noted during audit test work: 1. The amount provided to subrecipients under assistance listing 21.023 ? Emergency Rental Assistance was understated by $118.8 million, or 99%. The amount originally reported was $1.3 million but during audit test work it was determined that this amount should have been $120.1 million. 2. The amount provided to subrecipients under assistance listing 21.027 ? Coronavirus State and Local Fiscal Recovery Funds was understated by $77.3 million, or 89%. The amount originally reported was $9.7 million but during audit test work it was determined that this amount should have been $87 million. 3. Total expenditures reported under assistance listing 21.027 ? Coronavirus State and Local Fiscal Recovery Funds were overstated by $6.2 million, or 6%. The amount originally reported was $107.8 million but during audit test work it was determined that this amount should have been $101.6 million. The original reported amount included duplicate expenditures of approximately $6 million. 4. The amount provided to subrecipients under assistance listing 21.019 ? Coronavirus Relief Fund could not be verified. During the prior year?s audit, significant reporting errors were noted in the amount provided to subrecipients. During the current year?s audit, Finance indicated that it had not yet fully implemented the FY 2021 corrective action plan for this issue and, as a result, it was unable to verify the accuracy of the amount reported as provided to subrecipients during FY 2022. Questioned costs: Undetermined. Cause: Individual State agencies/departments prepare their own sections of the SEFA and submit them to Finance which compiles the State?s consolidated report. Procedures and internal controls were not sufficient to ensure that expenditures reported by Finance on the SEFA were accurate and were supported by detail expenditure transactions recorded in the State?s accounting system. On the initial SEFA submitted to auditors, approximately $6 million had been duplicated in total expenditures under 21.027 - Coronavirus State and Local Fiscal Recovery Funds. Payments to subrecipients under Emergency Rental Assistance and Coronavirus State and Local Fiscal Recovery Funds were improperly coded in the State?s accounting system which caused them to be excluded when the SEFA was initially prepared. Further, the prior year?s corrective action plan had not been fully implemented to allow Finance to verify the accuracy of the amount reported as provided to subrecipients under the Coronavirus Relief Fund during FY 2022. Effect: The amount provided to subrecipients was incorrectly reported on the SEFA submitted to auditors which effected testing of subrecipient monitoring for the programs. Recommendation: We recommend that Finance improve its SEFA compilation process to ensure that program expenditures and the amounts provided to subrecipients reported on the State?s SEFA are complete and accurate. We further recommend that Finance work with the State?s agencies and departments to review and enhance procedures and controls to ensure that subrecipient payments are accurately recorded in the State?s accounting system and that expenditure information submitted to Finance for inclusion on the State?s SEFA is accurate and ties to detail expenditure transactions in the State?s accounting system. Views of responsible officials: Management agrees with the finding.
2022-008 Inadequate Schedule of Federal Expenditures Reporting Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing No. 84.063, 84.268 Federal Award Identification Number and Year: P063P218567-2022, P268K228567-2022 Award Periods: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: CFR ?200.510(b) of the Uniform Guidance 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 ?200.502 of the Uniform Guidance, ?Basis for Determining Federal Awards Expended. Condition: Though the College provided a Schedule of Federal Expenditures, the College did not have the controls in place to provide a Schedule of Federal Expenditures timely. Questioned Costs: None Context: The College did not have the controls in place to provide a Schedule of Federal Expenditures in a timely manner. Cause: The College did not have the appropriate resources and staffing in place to verify they were in compliance with all requirements. Effect: An incorrect Schedule of Federal Expenditures can delay an audit beyond the reporting deadline and cause unnecessary audit costs. Also, the delay could cause the College not to be in compliance with the DCF submission. Repeat findings: 2021-011 Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
2022-008 Inadequate Schedule of Federal Expenditures Reporting Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing No. 84.063, 84.268 Federal Award Identification Number and Year: P063P218567-2022, P268K228567-2022 Award Periods: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: CFR ?200.510(b) of the Uniform Guidance 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 ?200.502 of the Uniform Guidance, ?Basis for Determining Federal Awards Expended. Condition: Though the College provided a Schedule of Federal Expenditures, the College did not have the controls in place to provide a Schedule of Federal Expenditures timely. Questioned Costs: None Context: The College did not have the controls in place to provide a Schedule of Federal Expenditures in a timely manner. Cause: The College did not have the appropriate resources and staffing in place to verify they were in compliance with all requirements. Effect: An incorrect Schedule of Federal Expenditures can delay an audit beyond the reporting deadline and cause unnecessary audit costs. Also, the delay could cause the College not to be in compliance with the DCF submission. Repeat findings: 2021-011 Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
The Lawrence County Fiscal Court Did Not Establish And Maintain Effective Internal Controls Over Compliance With Coronavirus State and Local Fiscal Recovery Fund (SLFRF) Requirements Federal Program: Assistance Listing #: 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: 2022 Name of Federal Agency: U.S. Department of the Treasury Compliance Requirements: Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Reporting Type of Finding: Significant Deficiency Amount of Questioned Costs: $0 COVID Related: Yes The Lawrence County Fiscal Court transferred federal funds from the ARPA fund to the general, jail, road, LGEA, and E-911 funds without first ensuring sufficient supporting documentation of allowable expenditures during the same period as the funds were reported as expended on the Schedule of Expenditures of Federal Awards (SEFA). The county was awarded $2,975,148 in American Rescue Plan Act (ARPA) funds, receiving the first payment of $1,487,618 into the ARPA fund in May 2021, and their second payment of $1,487,530 in June 2022.The fiscal court?s transfers in total from the ARPA fund to each fund are provided below: ? General - $714,640 ? Road - $250,000 ? Jail - $40,000 ? LGEA - $25,000 ? E-911 - $10,000 ? Payroll - $217,739 These transfers from the ARPA fund were considered ?lost revenue? according to their fiscal court meeting minutes. At the time of these transfers, and until auditors inquired about the supporting documentation, the county did not maintain a list of expenditures that reconciled to the transfer total. After this inquiry, the county gathered documentation and provided auditors a reconciliation of expenditures of eligible costs that supported the amount transferred into the general fund. An effective internal control system was not in place in Lawrence County to ensure compliance with requirements related to the administration of ARPA funds and the Allowable Costs/Cost Principles compliance requirements. The lack of internal controls was a systemic issue throughout the period. Failure to establish and maintain effective internal controls over compliance with federal program requirements could subject the county to the risk of reporting ineligible expenditures on the SEFA and using grant funds for unallowable purposes. 2 CFR 200.303 states in part, ?[t]he non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR ?200.302(b) states, ?[t]he financial management system of each non-Federal entity must provide for the following ?: (2) [a]ccurate, current and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set for in ?200.328 and 200.329.? In addition, 2 CFR ?200.502(a) states, ?[t]he determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.? Therefore, the county should only include expenditures on the Schedule of Expenditures of Federal Awards (SEFA) for which there is sufficient supporting documentation. We recommend the county establish and maintain internal controls over compliance for all federal program expenditures to ensure accurate use and reporting of federal awards, including maintaining sufficient supporting documentation of expenditures that reconciles to any transfer from a federal program fund into other county funds.
Criteria or specific requirement: Per the 2 CFR 200.502, Basis for Determining Federal Awards Expended, the schedule of expenditures of federal awards (SEFA) for the period covered by the financial statements must be complete, accurate, and include the total federal awards expended. Per the 2022 OMB Compliance Supplement for ALN No. 32.009, Allowable costs must meet general criteria for allowability, including being necessary and reasonable for the performance of the Federal award, allocable thereto and adequately documented. Condition The amounts presented for the Emergency Connectivity Fund Program on the District?s SEFA were adjusted by $707,123. Of this amount, $138,673.08 was for ineligible cases submitted for reimbursement that are not allowable under the program. Questioned costs: $138,673.08. Context Federal award requires accurate and reliable documentation of allowable costs and SEFA reporting. Cause The District was unaware cases for laptops would be deemed ineligible. They believe the remaining amount rejected of $568,449 for warranties and licenses will get accepted during litigation but won?t have a resolution during 2022. Therefore, the SEFA was adjusted for the full amount of $707,123. Effect An adjustment of $707,123 was required to be made to the District?s SEFA and $138,673.08 of this amount was deemed ineligible for reimbursement. Repeat Finding: No Recommendation We recommend that the District improve the review process over tracking and reporting reimbursements of federal expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program Name: Federal Transit Cluster CFDA No.: 20.500/20.507/20.525 Federal Grantor: U.S. Department of Transportation Award No. and Year: Various Compliance Requirements: Other Type of Finding: Material Weakness in Internal Control and Instance of Non-Compliance Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-federal entities receiving federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA) showing both the total federal expenditures and amounts passed through to subrecipients for the year. Per Title 2 CFR 200.502, the determination of when a Federal award must be expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition: SCRRA reported expenditures on the current year SEFA that were previously reported as expenditures on the prior year SEFA. Cause: SCRRA did not have adequate internal controls in place to ensure total federal expenditures were appropriately reported on the SEFA. Effect: Prior to the correction, the total federal expenditures on the SEFA was overstated by $3,098,000. Questioned Costs: None Context/Sampling: No sampling was used; program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from Prior Year(s): No Recommendation: We recommend SCRRA enhance controls to ensure federal expenditures are accurately reported on the SEFA. Views of Responsible Officials: Management Agrees. See separate corrective action plan.
Program - Various, including AL 97.036 ? Disaster Grants - Public Assistance (Presidentially Declared Disasters); AL 10.923 ? Emergency Watershed Protection Program; and AL 93.563 ? Child Support Enforcement - Reporting Grant Number & Year - Various Federal Grantor Agency -Various, including U.S. Department of Homeland Security; U.S. Department of Agriculture; and U.S. Department of Health and Human Services Pass-Through Entity -Various, including Nebraska Military Department and Nebraska Department of Health and Human Services Criteria - Title 2 CFR ? 200.510(b) (January 1, 2022) states, in part, the following: 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. Title 2 CFR ? 200.303 (January 1, 2022) states the following, in relevant part: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ``Standards for Internal Control in the Federal Government?? issued by the Comptroller General of the United States or the ``Internal Control Integrated Framework??, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures of Federal Awards (SEFA) is properly presented and includes all Federal expenditures made by the County during the fiscal year. Condition - Colfax County does not have adequate procedures in place to ensure the Schedule of Expenditures of Federal Awards (SEFA) is completed accurately, and includes all Federal expenditures paid by the County. Specifically, we noted that expenditures of $27,831 for Assistance Listing # 10.923 were omitted from the County's fiscal year ending June 30, 2021, SEFA. This was not considered a material error, and it would not have impacted major program determination for the fiscal year 2021 audit. Repeat Finding - No Questioned Costs - None Statistical Sample - No Cause - Administration of Federal awards is decentralized with each County office operating independently without any centralized reporting procedures in place to ensure all Federal expenditures of the County are accurately reported on the SEFA. Additionally, there is an overall lack of knowledge by County personnel related to Federal reporting and compliance requirements. Effect -Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or failure to audit programs that should be audited. Recommendation -We recommend the County establish written procedures to ensure the SEFA is complete and accurate. Such procedures may include, among other things, a requirement that all offices in the County responsible for administering a Federal grant report their grant expenditures, and related information, to a single individual in the County with overall responsibility for Federal reporting requirements. That individual should be knowledgeable of Federal reporting and compliance requirements, and review expenditures provided by each office to ensure all amounts are accurate and include all Federal expenditures of the County. View of Officials -The County will develop a Schedule of Expenditures of Federal Awards (SEFA) chart and designate the County Clerk to coordinate the collection of information from individual county offices on Federal awards expenditures.
CFDA Number, Federal Agency, and Program Name - 84.425J - U.S. Department of Education, Education Stabilization Fund - Higher Education Emergency Relief Fund Federal Award Identification Number and Year - 2022 - 84.425 J Finding Type - Material weakness Repeat Finding - No Criteria -Per 2 CFR 200.510(b), the College must prepare a schedule of federal expenditures (SEFA) for the period covered by the auditee's financial statements which must include the total federal awards expended as as determined in accordance with section 200.502. Condition - The SEFA was not complete or accurate. Questioned Costs - none Identification of How Questioned Costs Were Computed - N/A Context - As described in financial statement finding 2022-001, during fiscal year June 20, 2022, approximately $9.3 million of lost revenue was incorrectly recorded as revenue in fiscal year 2022. In addition, the College initially also incorrectly included the $9.3 million in lost revenue on the fiscal year 2022 SEFA. This lost revenue was incurred in fiscal year June 30, 2021 and has been excluded from the final June 30, 2022 SEFA. Recommendation -The College should implement a procedure to ensure the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - Management has accepted the finding. Moving forward, internal controls will be strengthened with regard to review and recording of revenue and expense recognition. Specifically, as it relates to this instance, review of documentation from the U.S. Department of Education (DOE) as it relates to HEERF grant funding will be more closely reviewed for understanding to include verification of understanding, guidelines and procedures from the DOE and other pertinent agencies for grant funding.
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 (SEFA) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502.? Condition: The total federal expenditures initially reported in the SEFA totaled $1,614,338. However, further examination determined an additional major program with $1,321,287 in federal funds from another federal pass-through grant should have been reported within the SEFA, increasing the SEFA in total. Cause: The School?s controls did not operate as designed to ensure the proper preparation and review of the SEFA included all direct and pass-through awards. Effect or potential effect: The SEFA was not fairly presented, in all material respects, in relation to the basic statements taken as a whole. Questioned costs: None Context: This is a condition identified based upon our review of the School?s compliance with specified requirements. The prevalence of this finding is detailed in the condition section above. Repeat finding: This is a repeat finding Recommendation: We recommend that the School review its policies and procedures to ensure that federal expenditures are correctly reported on the SEFA by ensuring program personnel review the SEFA awards for completeness prior to release to the auditors. View of responsible officials: The Organization?s management agrees with the finding and recommendation. Management of the Organization has developed a corrective action plan to address this finding.
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 (SEFA) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502.? Condition: The total federal expenditures initially reported in the SEFA totaled $1,614,338. However, further examination determined an additional major program with $1,321,287 in federal funds from another federal pass-through grant should have been reported within the SEFA, increasing the SEFA in total. Cause: The School?s controls did not operate as designed to ensure the proper preparation and review of the SEFA included all direct and pass-through awards. Effect or potential effect: The SEFA was not fairly presented, in all material respects, in relation to the basic statements taken as a whole. Questioned costs: None Context: This is a condition identified based upon our review of the School?s compliance with specified requirements. The prevalence of this finding is detailed in the condition section above. Repeat finding: This is a repeat finding Recommendation: We recommend that the School review its policies and procedures to ensure that federal expenditures are correctly reported on the SEFA by ensuring program personnel review the SEFA awards for completeness prior to release to the auditors. View of responsible officials: The Organization?s management agrees with the finding and recommendation. Management of the Organization has developed a corrective action plan to address this finding.
Assistance Listing Number, Federal Agency, and Program Name - 84.425, U.S. Department of Education, Education Stabalization Fund Federal Award Identification Number and Year - P425E203325, Various Pass-through Entity - N/A Finding Type: Significant Deficiency Repeat Finding - No Criteria - Expenditures are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) according to the basis of accounting followed by the nonfederal entity, per 2 CFR 200.502(a) and in accordance with the cost principles that the program is subject to (2 CFR 200, Subpart E). Condition - The College reported $593,703 of expenditures on the SEFA for disbursements to students that occurred prior to July 1, 2021. This treatment is not in accordance with the accrual basis of accounting following generally accepted accounting principles (GAAP), which is the basis of accounting for the College's SEFA. Questioned Costs - There were no questioned costs identified. Identification of How Questioned Costs Were Computed - Although the expenditures identified were not reported in the appropriate period for the purposes of the SEFA, based on audit procedures performed, they were still within the period of performance for the award. Context - Amounts that were disbursed to students in June 2021 as emergency grants under the Student Portion of the award for summer term were incorrectly not captured on the June 30, 2021 SEFA. These amounts were reported on the June 30, 2022 SEFA. Because they were not captured in the appropriate period, the College concluded to report them on the 2022 SEFA in order to ensure that the expenditures were subject to audit. Cause and Effect - Instead of the College accumulating the total expenditures by disbursement date, management accumulated the total expenditures by academic term. This resulted in a certain expenditures being reported on the SEFA in the incorrect period. Recommendation - We recommend that the College establish controls to ensure appropriate cutoff for SEFA reporting purposes. Views of Responsible Officials and Corrective Action Plan - The College will review its practices for SEFA reporting and in the future follow U.S. GAAP and the uniform guidance.
Assistance Listing Number, Federal Agency, and Program Name - 84.425, U.S. Department of Education, Education Stabalization Fund Federal Award Identification Number and Year - P425E203325, Various Pass-through Entity - N/A Finding Type: Significant Deficiency Repeat Finding - No Criteria - Expenditures are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) according to the basis of accounting followed by the nonfederal entity, per 2 CFR 200.502(a) and in accordance with the cost principles that the program is subject to (2 CFR 200, Subpart E). Condition - The College reported $593,703 of expenditures on the SEFA for disbursements to students that occurred prior to July 1, 2021. This treatment is not in accordance with the accrual basis of accounting following generally accepted accounting principles (GAAP), which is the basis of accounting for the College's SEFA. Questioned Costs - There were no questioned costs identified. Identification of How Questioned Costs Were Computed - Although the expenditures identified were not reported in the appropriate period for the purposes of the SEFA, based on audit procedures performed, they were still within the period of performance for the award. Context - Amounts that were disbursed to students in June 2021 as emergency grants under the Student Portion of the award for summer term were incorrectly not captured on the June 30, 2021 SEFA. These amounts were reported on the June 30, 2022 SEFA. Because they were not captured in the appropriate period, the College concluded to report them on the 2022 SEFA in order to ensure that the expenditures were subject to audit. Cause and Effect - Instead of the College accumulating the total expenditures by disbursement date, management accumulated the total expenditures by academic term. This resulted in a certain expenditures being reported on the SEFA in the incorrect period. Recommendation - We recommend that the College establish controls to ensure appropriate cutoff for SEFA reporting purposes. Views of Responsible Officials and Corrective Action Plan - The College will review its practices for SEFA reporting and in the future follow U.S. GAAP and the uniform guidance.
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 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 as determined in accordance with ? 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 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 as determined in accordance with ? 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 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 as determined in accordance with ? 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.