Significant Deficiency – Internal Control over Compliance – ACTIVITIES ALLOWED OR UNALLOWED AND ALLOWABLE COSTS/COST PRINCIPLES ALN 84.010 Title I, Part A, Basic grants Low-Income and Neglected United States Department of Education Passed through State of Illinois Department of Education Type of finding: Significant deficiency in internal controls over compliance. Criteria: In accordance with 2 CFR Part 200.303(a), the School must establish, document, and maintain effective internal control over Federal awards that provide reasonable assurance that the recipient of subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, 2 CFR 200.508(d) requires that the auditee ‘provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information needed for the auditor to perform the audit required by this part.’ Condition: The School was unable to provide supporting time and effort certification for 6 of the 40 samples tested due to data access restrictions in Chicago Public Schools (CPS) federal claim system. The existing CPS Federal Funds platform (Oracle) produces Time & Effort Attestation reports according to the month when reimbursement claims are submitted, not the actual period the work was completed, which leads to a compliance gap. Cause: The School did not maintain certain time and effort documentation for Title I employees within its own records, but instead relied on the records provided by the CPS system. The School was unable to access the CPS documentation for certain time periods charged to the program during the audit of the program. Questioned Costs: None. Effect: 6 of 40 samples tested did not have time and effort certification on file. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the School revise and implement controls to ensure consistent maintenance of all supporting documentation needed for audit. Management Response: See corrective action plan on page 28.
Finding 2025-001: Significant Deficiency in Internal Control Over Federal Awards – Inadequate Review of Payroll Reports Federal Programs 93.912 and 93.110 U.S Department of Health and Human Services Criteria: Under 2 CFR 200.303 and 2 CFR 200.508, the auditee is required to maintain adequate internal controls over federal awards, including sufficient review and approval procedures to ensure costs charged to the federal program are allowable, properly supported, and accurately coded. Condition: During the transition to a new payroll provider, timesheets were processed and payroll was run without official supervisor review and approval, as required by the Organization’s policy. In several instances, there was no evidence of supervisor approval on the timesheets prior to processing. Cause: The deficiency occurred due to a misunderstanding in the manual approval process during the transition to the new payroll provider. Specifically, supervisors were approving timesheets in the new system but not saving their work, resulting in the absence of official approvals. Effect: This deficiency increases the risk that unauthorized or inaccurate payroll transactions could occur and not be detected or corrected in a timely manner, which could result in noncompliance with applicable federal requirements related to payroll costs. However, we did not identify any questioned costs or evidence of material noncompliance as a result of this deficiency during audit procedures. Questioned Costs: None. Recommendation: The Organization should strengthen payroll approval controls by requiring formal, documented supervisor approval for all timesheets prior to payroll processing, with clear evidence of approval retained for audit purposes. These updates to controls should be included in internal control documents to ensure all users understand their responsibilities. Views of responsible officials: See attached corrective action plan.
FINDING 2025-004 Subject: Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Agriculture Federal Programs: School Breakfast Program, National School Lunch Program, Summer Food Service Program for Children, Fresh Fruit and Vegetable Program Assistance Listings Numbers: 10.553, 10.555, 10.559, 10.582 Federal Award Numbers and Years (or Other Identifying Numbers): FY 2023-2024, FY 2024-2025 Pass-Through Entity: Indiana Department of Education Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation had not designed or implemented a system of internal controls, which would have included appropriate segregation of duties, that would have likely been effective in preventing, or detecting and correcting, noncompliance. The School Corporation transferred $313,369 from the School Lunch fund into the Operations fund. This transfer was labeled as an indirect cost transfer; however, indirect costs were not approved to be charged to the program. This transfer was also not approved by the School Board. The issue was identified and corrected by the current Treasurer prior to June 30, 2025. The lack of internal controls and noncompliance over allowable activities was an isolated instance. Criteria 2 CFR 200.302 states in part: "(a) Each state must expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state's own funds. In addition, the state's and the other non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. . . . (b) The financial management system of each non-Federal entity must provide for the following . . . (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. . . . (3) Records that identify adequately the source and application of funds for federallyfunded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. INDIANA STATE BOARD OF ACCOUNTS 23 PLYMOUTH COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (4) Effective control over, and accountability for, all funds, property, and other assets. . . ." 2 CFR 200.303 states in 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). . . ." 2 CFR 200.400 states in part: "The application of these cost principles is based on the fundamental premises that: (a) The non-Federal entity is responsible for the efficient and effective administration of the Federal award through the application of sound management practices. (b) The non-Federal entity assumes responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award. (c) The non-Federal entity, in recognition of its own unique combination of staff, facilities, and experience, has the primary responsibility for employing whatever form of sound organization and management techniques may be necessary in order to assure proper and efficient administration of the Federal award. . . ." 2 CFR 200.403 states in part: "Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: . . . (g) Be adequately documented. . . ." 2 CFR 200.404 states in part: "A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. The question of reasonableness is particularly important when the non- Federal entity is predominantly federally-funded. In determining reasonableness of a given cost, consideration must be given to: . . . (e) Whether the non-Federal entity significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the Federal award's cost." INDIANA STATE BOARD OF ACCOUNTS 24 PLYMOUTH COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) 2 CFR 200.508 states in part: "The auditee must: . . . (d) Provide the auditor with access to personnel, accounts, books, records, supporting documentation, and any other information as needed for the auditor to perform the audit required by this part." Federal Register, Vol. 87, No. 18 states in part: "Treasury has divided the Restriction on Use section into . . . (B) other restrictions on use, which include (1) debt service and replenishing reserves, (2) settlements and judgements, and (3) general restrictions. These restrictions apply to all eligible use categories. . . ." Cause The School Corporation had not developed a system of internal controls that would have ensured that all activities and costs were in compliance with the Activities Allowed or Unallowed and the Allowable Costs/Cost Principles compliance requirements. Effect Without the proper design or implementation of the components of a system of internal controls, including policies and procedures that provide segregation of duties and additional oversight as needed, the internal control system was not capable of effectively preventing, or detecting and correcting, noncompliance as identified in the Condition and Context. Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure all activities are allowable. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2025-006 Subject: Title I Grants to Local Educational Agencies - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listings Number: 84.010 Federal Award Numbers and Years (or Other Identifying Numbers): S010A220014, S010A230014 Pass-Through Entity: Indiana Department of Education Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Audit Findings: Material Weakness, Modified Opinion Condition and Context The School Corporation did not have effective internal controls in place to ensure all costs paid from Title I funds and submitted for reimbursement were for allowable activities or allowable costs. As a result, the following compliance issues were noted: On May 26, 2023, a check for $886 was issued for which supporting documentation could not be provided. As a result, it could not be determined if the expense was for an allowable activity or an allowable cost. On August 16, 2024, seven stipends were paid to non-Title I administrative staff from Title I grant funds. Two employees received $5,000 each and five employees received $3,000 each. On December 20, 2024, three stipends for $918 each were paid from Title I grant funds to employees who had previously received a stipend payment on August 16, 2024. These stipends were determined to not be an allowable activity or an allowable cost. The current Treasurer identified the stipend errors. The School Corporation requested and received reimbursement from the seven employees who received these stipends. INDIANA STATE BOARD OF ACCOUNTS 27 PLYMOUTH COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Criteria 2 CFR 200.302 states in part: "(a) Each state must expend and account for the Federal award in accordance with state laws and procedures for expending and accounting for the state's own funds. In addition, the state's and the other non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. . . . (b) The financial management system of each non-Federal entity must provide for the following . . . (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. Federal program and Federal award identification must include, as applicable, the Assistance Listings title and number, Federal award identification number and year, name of the Federal agency, and name of the pass-through entity, if any. (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329. . . . (3) Records that identify adequately the source and application of funds for federallyfunded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. (4) Effective control over, and accountability for, all funds, property, and other assets. . . ." 2 CFR 200.303 states in 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). . . ." 2 CFR 200.400 states in part: "The application of these cost principles is based on the fundamental premises that: (a) The non-Federal entity is responsible for the efficient and effective administration of the Federal award through the application of sound management practices. INDIANA STATE BOARD OF ACCOUNTS 28 PLYMOUTH COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) (b) The non-Federal entity assumes responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award. (c) The non-Federal entity, in recognition of its own unique combination of staff, facilities, and experience, has the primary responsibility for employing whatever form of sound organization and management techniques may be necessary in order to assure proper and efficient administration of the Federal award. . . ." 2 CFR 200.403 states in part: "Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (g) Be adequately documented. . . ." 2 CFR 200.404 states in part: "A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. The question of reasonableness is particularly important when the non- Federal entity is predominantly federally-funded. In determining reasonableness of a given cost, consideration must be given to: . . . (e) Whether the non-Federal entity significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the Federal award's cost." 2 CFR 200.508 states in part: "The auditee must: . . . (d) Provide the auditor access to personnel, accounts, books, records, supporting documentation, and any other information as needed for the auditor to perform the audit required by this part." Federal Register, Vol. 87, No. 18 states in part: "Treasury has divided the Restriction on Use section into . . . (B) other restrictions on use, which include (1) debt service and replenishing reserves, (2) settlements and judgements, and (3) general restrictions. These restrictions apply to all eligible use categories. . . ." Cause The School Corporation did not design and implement an effective internal control system to review all payroll expenditures from the Title I funds, ensuring they were for allowable activities. Effect The failure to design and implement an effective internal control system over payroll expenditures caused noncompliance with the compliance requirements as detailed in the Condition and Context. INDIANA STATE BOARD OF ACCOUNTS 29 PLYMOUTH COMMUNITY SCHOOL CORPORATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Questioned Costs There were no questioned costs identified. Recommendation We recommended that management of the School Corporation establish a system of internal controls to ensure that grant award fund compliance requirements are appropriately researched prior to spending. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
2025-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.044, 93.045, 93.053 Aging Cluster and Maine DHHS 93.778 Medical Assistance Program (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-24-3355B (Medical Assistance Program) for the component period ended 9/30/24 was filed late by 3 days. Federal expenditures were understated for Agreement ADS-24-3355B (93.791 Money Follows the Person Rebalancing Demonstration) by $59,405 due to errors in reconciling grant reports to the SEFA. For the Agreement ADS-24-3004C reporting for the component period ended 9/30/24 contained inaccuracies resulting from budgeted percentage of expenses reimbursable by state and federal agreement funds. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 3 days late. Agreement Cost Sharing percentages were incorrectly used on reporting forms. Key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over preparation and review of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required elements and instructions. As part of the review, required elements should be vouched to original source documents including copies of awards, grant reports, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to ensure accurate grant reporting and compliance.
Assistance Listing Number, Federal Agency, and Program Name 14.157 U.S. Department of Housing and Urban Development Supportive Housing for the Elderly (Section 202) Capital Advance Federal Award Identification Number and Year N/A Pass through Entity N/A Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria 2 CFR 200.508 states in part: "The auditee must:... (b) Prepare financial statements, including the schedule of expenditures of Federal awards in accordance with § 200.510." 2 CFR 200.510(b) states in part: The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with § 200.502. The schedule must... (5) For loan or loan guarantee programs described in § 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This requirement is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule." Condition During the years ended June 30, 2023, 2024, and 2025, National Church Residences entered into capital advance grant agreements (Section 202) with HUD, which were directly funded to affiliates of National Church Residences, and, in turn, National Church Residences entered into notes receivable from the related parties in the same amount as the capital advance. The loan expenditures and outstanding loan balances related to the ALN 14.157 U.S. Department of Housing and Urban Development Supportive Housing for the Elderly (Section 202) Capital Advance were not included on the SEFA for the years ended June 30, 2025, 2024, and 2023. Questioned Costs None If Questioned Costs are Not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could Not be Reported N/A Identification of How Questioned Costs Were Computed N/A Context Federal expenditures related to ALN 14.157 U.S. Department of Housing and Urban Development Supportive Housing for the Elderly (Section 202) Capital Advance were not included on the SEFA prior to audit entries for the years ended June 30, 2025, 2024, and 2023. Cause and Effect Management had not established a system of internal control that would have ensured proper reporting of the SEFA. Without a proper system of internal control in place that operated effectively, material misstatements of the SEFA remained undetected. Prior to audit entries being made, the SEFA was understated by $9,411,680, $8,049,840, and $3,111,409 at June 30, 2025, 2024, and 2023, respectively. Recommendation National Church Residences accounting and development should consider all relative accounting guidance and agreements for related party transactions and grant/debt agreements (including capital advances) to ensure all federal expenditures are properly included on the SEFA. Views of Responsible Officials and Corrective Action Plan National Church Residences is in the process of establishing additional layers of internal controls to help ensure that all new agreements and any subsequent modifications are captured timely, completely, and accurately within the special purpose financial statements and SEFA.
Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.
Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.
2025-001 – Incomplete and Inaccurate Schedule of Expenditures of Federal Awards (SEFA) Criteria In accordance with 2 CFR § 200.508(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be prepared in accordance with the requirements of 2 CFR § 200.510(b), which includes reporting total federal awards expended for each federal program during the audit period, regardless of whether a reimbursement has been requested. Condition During our audit of the SEFA, we noted that the reported expenditures for the Economic Development Cluster only included those amounts for which reimbursement requests had been submitted as of year-end. Expenditures that had been incurred but not yet submitted for reimbursement were omitted. In addition, other grants were inadvertently excluded from the SEFA schedule. This resulted in an incomplete and inaccurate presentation of total federal expenditures for the fiscal year. Cause The cause of this condition was a misunderstanding by management regarding the proper basis for reporting federal expenditures. Management relied solely on reimbursement activity, rather than on total expenditures incurred during the audit period, when preparing the SEFA. In addition, management should review all federal funding/expenditures activity to verify all grants are captured on the SEFA. Effect Failure to report all federal expenditures incurred during the reporting period resulted in a misstatement of total federal awards expended. This can impact the determination of major programs, the risk assessment process, and federal oversight. Additionally, it results in noncompliance with federal regulations governing SEFA preparation. Recommendation We recommend that management implement procedures to ensure the SEFA includes all federal expenditures incurred during the reporting period, regardless of whether reimbursement has been requested. This should include reconciling SEFA amounts to the underlying accounting records and grant activity, as well as training responsible personnel on Uniform Guidance requirements for SEFA reporting. Management’s Response Responsible Official’s Response and Corrective Action Planned: We have implemented procedures to ensure that the SEFA includes all federal expenditures incurred during the reporting period, regardless of whether reimbursement has been requested. Reconciliation of the SEFA amounts are completed monthly. Management will also offer and require training to all personnel responsible on the Uniform Guidance requirements for SEFA reporting. Implementation Date: Immediate Person Responsible for Corrective Action Plan: Chief Financial Officer, Ashley Cason
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.
Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.
2025-001 – Incomplete and Inaccurate Schedule of Expenditures of Federal Awards (SEFA) Criteria In accordance with 2 CFR § 200.508(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be prepared in accordance with the requirements of 2 CFR § 200.510(b), which includes reporting total federal awards expended for each federal program during the audit period, regardless of whether a reimbursement has been requested. Condition During our audit of the SEFA, we noted that the reported expenditures for the Economic Development Cluster only included those amounts for which reimbursement requests had been submitted as of year-end. Expenditures that had been incurred but not yet submitted for reimbursement were omitted. In addition, other grants were inadvertently excluded from the SEFA schedule. This resulted in an incomplete and inaccurate presentation of total federal expenditures for the fiscal year. Cause The cause of this condition was a misunderstanding by management regarding the proper basis for reporting federal expenditures. Management relied solely on reimbursement activity, rather than on total expenditures incurred during the audit period, when preparing the SEFA. In addition, management should review all federal funding/expenditures activity to verify all grants are captured on the SEFA. Effect Failure to report all federal expenditures incurred during the reporting period resulted in a misstatement of total federal awards expended. This can impact the determination of major programs, the risk assessment process, and federal oversight. Additionally, it results in noncompliance with federal regulations governing SEFA preparation. Recommendation We recommend that management implement procedures to ensure the SEFA includes all federal expenditures incurred during the reporting period, regardless of whether reimbursement has been requested. This should include reconciling SEFA amounts to the underlying accounting records and grant activity, as well as training responsible personnel on Uniform Guidance requirements for SEFA reporting. Management’s Response Responsible Official’s Response and Corrective Action Planned: We have implemented procedures to ensure that the SEFA includes all federal expenditures incurred during the reporting period, regardless of whether reimbursement has been requested. Reconciliation of the SEFA amounts are completed monthly. Management will also offer and require training to all personnel responsible on the Uniform Guidance requirements for SEFA reporting. Implementation Date: Immediate Person Responsible for Corrective Action Plan: Chief Financial Officer, Ashley Cason
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-001 – Schedule of Federal Awards (SEFA) Preparation – Significant Deficiency Criteria: §200.508(b) of Uniform Grant guidance requires recipients of federal awards to prepare a Schedule of Expenditures of Federal Awards (SEFA). Condition: During our audit, we noted that the SEFA initially prepared by Western Landowners Alliance did not include the required Assistance Listing Numbers (formerly CFDA numbers) for each federal program, and the amounts of federal expenditures reported contained inaccuracies. Cause: This was Western Landowners Alliance’s first year preparing a SEFA and staff are still becoming familiar with the detailed requirements of the Uniform Guidance (2 CFR Part 200). Effect: Western Landowners Alliance did not prepare a SEFA accurately and in accordance with Uniform Guidance. Questioned Costs: None noted. Repeat Finding: Not a repeat finding. Recommendation: We recommend that Western Landowners Alliance enhance its understanding of SEFA preparation requirements, consider additional training on Uniform Guidance, and implement review procedures to help ensure the completeness and accuracy of the SEFA in future reporting periods. View of Responsible Officials: Western Landowners Alliance agrees with the finding and recommendation and has put together a corrective action plan that is included in this report.
2024-003: Material Weakness Over Internal Controls with the Schedule Expenditures of Federal Awards Federal Program: Local Assistance and Tribal Consistency Fund and Coronavirus State and Local Fiscal Recovery Funds Federal Assistance Listing Number(s): 21.032 and 21.027 Federal Agency: U.S. Department of Transportation and U.S. Department of Treasury Pass-through Entity: Colorado Department of Transportation (20.205 only) Criteria: 2 CFR 200.508 states that the auditee must prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. In addition, 2 CFR 200.303 in part states that a recipient of a Federal award must establish, document, and maintain effective internal control over the Federal awards. Condition: The expenditure amounts related to the 21.032 and 21.027 federal programs provided for the SEFA were materially misstated compared to the County’s accounting records. The County provides information to the auditors to assist with the preparation of the financial statements and the schedule of expenditure of federal awards. However, the information provided to the auditors for the SEFA did not match the information in the accounting records. Therefore, the County had material misstatements and prior year corrections (restatements) related to grants and federal awards. Cause: Lack of internal controls over financial reporting of the SEFA and federal expenditures.. Effect: This caused material audit adjustments to the financial statements and the significant corrections to the SEFA and potential for unidentified misstatements and lack of reporting of Federal awards on the SEFA. Repeat Finding: No. Recommendation: We recommend that the County establish internal controls over grants management and SEFA preparation processes during that year to make sure that the Federal expenditures are properly reflected on the information used to prepare the SEFA and match the accounting records.
Finding Number: 2024-001 Federal Program: Community Development Block Grant (CDBG) – Assistance Listing 14.218 Condition: The City’s original Schedule of Expenditures of Federal Awards (SEFA) and supporting audit documentation for the year ended October 31, 2024, did not include expenditures related to the Community Development Block Grant (CDBG) program. The omission was identified during the audit process and the SEFA was subsequently revised to include the CDBG program. Criteria: 2 CFR 200.510(b) requires the auditee to prepare a SEFA that lists individual federal programs by federal agency, including the Assistance Listing number, and to report total federal awards expended for each program. 2 CFR 200.508(b) requires the auditee to identify in its accounts all federal awards received and expended and the federal programs under which they were received. Cause: The omission occurred due to inadequate internal controls over the identification and reporting of all federal programs and related expenditures in the SEFA. Effect: As a result, the CDBG program was not initially subject to audit procedures required by the Uniform Guidance, increasing the risk that material noncompliance with federal requirements could go undetected. Recommendation: We recommend that the City strengthen its internal controls over the preparation of the SEFA to ensure that all federal programs and related expenditures are identified, recorded, and reported accurately and completely. This should include a review and reconciliation process involving all departments responsible for federal program administration. Management’s Response: Management concurs with the finding and has implemented additional review procedures to ensure all federal programs are identified and included in the SEFA in future years.