Finding 2023-002: Schedule of Expenditures of Federal Awards (Significant Deficiency) Federal Program: 93.129 - U.S. Department of Health and Human Services Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), the Organization is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: The Organization included expenditures in its SEFA totaling $9,175 that were in excess of allowable costs for the year ended December 31, 2023. As a result, management provided a revised SEFA after the major program determination had already been completed. Because the Organization had not billed the government for the excess expenditures, there were no questioned costs. Cause: The initial SEFA provided by management at the start of the audit was based on the profit and loss statements, which are used to track both federal and non-federal expenditures. However, the profit and loss statements did not specifically identify the non-federal expenditures which were not allowed to be charged to the federal award. Effect or Potential Effect: The SEFA could have been materially misstated. If the SEFA is not accurately prepared, it could have an effect on the auditor's determination of major programs. Recommendation: The Organization should implement procedures to ensure the accurate preparation of the SEFA prior to the start of the audit.
Finding 2023-002: Schedule of Expenditures of Federal Awards (Significant Deficiency) Federal Program: 93.129 - U.S. Department of Health and Human Services Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), the Organization is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: The Organization included expenditures in its SEFA totaling $9,175 that were in excess of allowable costs for the year ended December 31, 2023. As a result, management provided a revised SEFA after the major program determination had already been completed. Because the Organization had not billed the government for the excess expenditures, there were no questioned costs. Cause: The initial SEFA provided by management at the start of the audit was based on the profit and loss statements, which are used to track both federal and non-federal expenditures. However, the profit and loss statements did not specifically identify the non-federal expenditures which were not allowed to be charged to the federal award. Effect or Potential Effect: The SEFA could have been materially misstated. If the SEFA is not accurately prepared, it could have an effect on the auditor's determination of major programs. Recommendation: The Organization should implement procedures to ensure the accurate preparation of the SEFA prior to the start of the audit.
2023-004 Schedule of Expenditures of Federal Awards Criteria: CFR Part 200.508 Audit Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual federal awards by federal agency, including the total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards was prepared by the auditor based on federal award contracts provided by the auditee. Also, during 2023 an additional federal award was received that management was not aware of. Cause: Management has limited knowledge on requirements of a Single Audit. Management relied on auditors to prepare the Schedule of Expenditures of Federal Awards. Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected or corrected. Questioned Costs: None noted. Recommendation: Establish procedures to prepare the annual Schedule of Expenditures of Federal Awards and reconcile amounts reported to the Organization's general ledger. The Organization should provide appropriate training to staff who work with government funding. Views of Responsible Officials and Planned Corrective Actions: Management will continue to ensure that the Schedule of Expenditures of Federal Awards is complete. Inspiration did prepare the 2023 SEFA, and it was delivered to the auditors immediately in April 2024 at the beginning of our audit.
Finding 2023-003: Error in the 2022 SEFA (Significant Deficiency) Information on the Federal Programs: Both Major Programs Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), an entity is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: Management noted that the 2022 SEFA was understated by $146,051. No issues were noted during the audit regarding the 2023 expenditures reported on the SEFA for the year ended December 31, 2023. Therefore, this compliance finding is not considered to be a material weakness. Cause: While the total expenses reported in the 2022 financial statements was correct, $146,051 of the Federal expenditures were not clearly or properly classified as Federal in the 2022 general ledger. As a result, expenses totaling $146,051 were not included on the 2022 SEFA. Effect or Potential Effect: As a result of the understatement of expenditures reported on the 2022 SEFA, a material misstatement of the 2022 financial statements occurred. In addition, the 2023 SEFA includes the unreported 2022 costs of $146,051. Questioned Costs: None. Repeat Finding: See Finding 2022-006. Recommendation: We recommend that management implement procedures to easily segregate Federal expenditures so that an accurate SEFA can be prepared on a consistent basis.
Finding 2023-003: Error in the 2022 SEFA (Significant Deficiency) Information on the Federal Programs: Both Major Programs Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), an entity is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: Management noted that the 2022 SEFA was understated by $146,051. No issues were noted during the audit regarding the 2023 expenditures reported on the SEFA for the year ended December 31, 2023. Therefore, this compliance finding is not considered to be a material weakness. Cause: While the total expenses reported in the 2022 financial statements was correct, $146,051 of the Federal expenditures were not clearly or properly classified as Federal in the 2022 general ledger. As a result, expenses totaling $146,051 were not included on the 2022 SEFA. Effect or Potential Effect: As a result of the understatement of expenditures reported on the 2022 SEFA, a material misstatement of the 2022 financial statements occurred. In addition, the 2023 SEFA includes the unreported 2022 costs of $146,051. Questioned Costs: None. Repeat Finding: See Finding 2022-006. Recommendation: We recommend that management implement procedures to easily segregate Federal expenditures so that an accurate SEFA can be prepared on a consistent basis.
Highway Planning and Construction - Assistance Listing No. 20.205; Passed through Pennsylvania Department of Transportation, Grant Period - Year Ended December 31, 2023. Material Weakness: See deficiency 2023-002 in Section II - listed below 2023-002. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS -Criteria: The Township must prepare appropriate financial statements, including the schedule of expenditures of federal awards (SEFA), in accordance with Title 2 CFR Sections 200.510(b) and 200.508(b) of the Uniform Guidance. The preparation of the SEFA assists the Township in determining whether it has a Single Audit reporting requirement. Condition: Although management prepared a draft of the SEFA, it was incomplete and contained inaccurate information. Cause: Management did not identify all of the Township’s federal expenditures. Effect: Prior to adjustment, federal expenditures were materially misstated. Questioned Costs: Not applicable. Perspective Information: Not applicable. Identification of Repeat Findings: Not applicable. Recommendation: The Township should establish procedures to identify all expenditures and reporting requirements of its federal programs. Views of Responsible Officials: Management agrees with the finding. Planned Corrective Action: See Township’s corrective action plan.
Finding 2023-003: Schedule of Expenditures of Federal Awards (Significant Deficiency) Information on the Federal Program: All programs in the 2023 SEFA. See Finding 2023-002.Criteria: In accordance with 2 CFR Section 200.508 (b), USTTI is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: USTTI experienced difficulty in ensuring that all Federal expenditures were identified, categorized and included in the SEFA. Due to the amount of program codes in the accounting system, it was difficult to identify which subprogram codes related to the various Federal programs. In addition, indirect costs reported to the Federal granting agencies were not properly calculated. This condition impacted the entire SEFA and is considered to be a systematic problem. Cause: The high volume of subprogram codes was a contributing factor to the error as well as the improper calculation of the indirect costs on the grants. Effect: USTTI experienced difficulty in preparing an accurate SEFA. Context: USTTI does not have processes and procedures in place to prepare an accurate SEFA.Questioned Costs: None. Identification as a Repeat Finding: Yes. See Finding 2022-002.Recommendation: We recommend USTTI prepare its SEFA on a quarterly basis in accordance with the Uniform Guidance, and it should be reviewed and approved by an individual in a supervisory capacity with knowledge of the grant program. USTTI should ensure that the review process encompasses agreeing the amounts in the SEFA to expenses recorded in the general ledger. Additionally, USTTI should review the indirect rate calculation to ensure that is is accurate and that USTTI is not charging more indirect costs than allowed in accordance with the terms of its grant.
Finding 2023-003: Schedule of Expenditures of Federal Awards (Significant Deficiency) Information on the Federal Program: All programs in the 2023 SEFA. See Finding 2023-002.Criteria: In accordance with 2 CFR Section 200.508 (b), USTTI is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: USTTI experienced difficulty in ensuring that all Federal expenditures were identified, categorized and included in the SEFA. Due to the amount of program codes in the accounting system, it was difficult to identify which subprogram codes related to the various Federal programs. In addition, indirect costs reported to the Federal granting agencies were not properly calculated. This condition impacted the entire SEFA and is considered to be a systematic problem. Cause: The high volume of subprogram codes was a contributing factor to the error as well as the improper calculation of the indirect costs on the grants. Effect: USTTI experienced difficulty in preparing an accurate SEFA. Context: USTTI does not have processes and procedures in place to prepare an accurate SEFA.Questioned Costs: None. Identification as a Repeat Finding: Yes. See Finding 2022-002.Recommendation: We recommend USTTI prepare its SEFA on a quarterly basis in accordance with the Uniform Guidance, and it should be reviewed and approved by an individual in a supervisory capacity with knowledge of the grant program. USTTI should ensure that the review process encompasses agreeing the amounts in the SEFA to expenses recorded in the general ledger. Additionally, USTTI should review the indirect rate calculation to ensure that is is accurate and that USTTI is not charging more indirect costs than allowed in accordance with the terms of its grant.
#2023-005 – Assistance Listing Number 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, U.S. Department of Housing and Urban Development Material Weakness in Internal Control and Failure to Comply with Federal Requirements of Contracts. Criteria: The Uniform Guidance – 2 CFR §200.508(b) and 2 CFR §200.508(d) – state: “The auditee must: …(b) Prepare appropriate financial statements, including the schedule of Federal awards in accordance with §200.510…(d) Provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by this part.” Statement of Condition: Management was unable to provide written internal controls over financial statement preparation, operations and federal awards. Cause: Management’s lack of knowledge of the Code of Federal Regulations. Effect: Corporation was not in compliance with 2 CFR §200. This contributed to the general ledger being incomplete and inaccurate. Recommendation: Management should establish written internal controls that document the controls over financial statement preparation, operations and federal awards. Questioned costs: None.
Finding SA 2023-002 Reporting: Late Submission of Single Audit Reporting Package Criteria Per 2 CFR §200.508(a) and §200.512(a) of the Uniform Guidance, entities that expend $750,000 or more in federal awards in a fiscal year must arrange for an audit in accordance with 2 CFR 200.509 and submit the Single Audit reporting package to the Federal Audit Clearinghouse (FAC) no later than nine months after the end of the fiscal year or 30 days after the receipt of the audit report, whichever is earlier. Timely submission is critical to ensure compliance with federal requirements and continued eligibility for federal funding. Condition The Organization did not submit the Single Audit reporting packages for the 2022 and 2023 audits within the required reporting timeline. Cause/Effect The late submission was due to delays in the Organization’s financial closing process. This non-compliance with the Uniform Guidance may result in the imposition of penalties and/or unnecessary costs. Questioned Costs None Recommendation We recommend that the Organization strengthen its internal controls over its financial accounting and reporting process to ensure consistent compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions: The Organization’s Accounting Department, under the direction of the Chief Executive Officer, Connie Franks will ensure that there’s proactive communication, dedicated resource allocation, and regular status checks on the deadline. He should ensure everyone involved understands the deadlines and responsibilities to avoid any delays. Completion of the referenced corrective action will be implemented by January 2025.
2023-001 Schedule of Expenditures of Federal Awards (Material Weakness) U.S. Department of Treasury 21.027 Coronavirus State and Local Fiscal Recovery Funds U.S. Department of Treasury 93.959 Block Grants for Prevention and Treatment of Substance Abuse Criteria: CFR Part 200.508 Audit Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual federal awards by federal agency, including the total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards was prepared by the auditor based on federal award contracts provided by auditee. Auditee was not aware of federal sources of funding. Cause: Management has limited knowledge on requirements of a Single Audit. Management relied on auditors to prepare the Schedule of Expenditures of Federal Awards. Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected or corrected. Questioned Costs: None noted. Recommendation: Establish procedures to prepare the annual Schedule of Expenditures of Federal Awards and reconcile amounts reported to the Organization's general ledger. The Organization should provide appropriate training to staff who work with government funding. Views of Responsible Officials and Planned Corrective Actions: The Organization will prepare a current Scheduel of Expenditures of Federal Awards, listing awards by federal agency, total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to subrecipients. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for this corrective action. The anticipated completion date is April 15, 2025.
2023-001 Schedule of Expenditures of Federal Awards (Material Weakness) U.S. Department of Treasury 21.027 Coronavirus State and Local Fiscal Recovery Funds U.S. Department of Treasury 93.959 Block Grants for Prevention and Treatment of Substance Abuse Criteria: CFR Part 200.508 Audit Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual federal awards by federal agency, including the total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards was prepared by the auditor based on federal award contracts provided by auditee. Auditee was not aware of federal sources of funding. Cause: Management has limited knowledge on requirements of a Single Audit. Management relied on auditors to prepare the Schedule of Expenditures of Federal Awards. Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected or corrected. Questioned Costs: None noted. Recommendation: Establish procedures to prepare the annual Schedule of Expenditures of Federal Awards and reconcile amounts reported to the Organization's general ledger. The Organization should provide appropriate training to staff who work with government funding. Views of Responsible Officials and Planned Corrective Actions: The Organization will prepare a current Scheduel of Expenditures of Federal Awards, listing awards by federal agency, total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to subrecipients. Monique Johnson, Executive Director of Allen County Drug & Alcohol Consortium, is responsible for this corrective action. The anticipated completion date is April 15, 2025.
Condition: The Organization's Schedule of Expenditures of Federal Awards (SEFA) inaccurately presented the federal expenditures for the federal awards. The Organization's SEFA was prepared of of September 30, 2023 and not their fiscal year, December 31, 2023. Criteria: Internal controls should be in place to provide reasonable assurance that the SEFA is prepared in accordance with the Uniform Guidance. The Uniform Guidance, at 2 CFR section 200.508(b), requires the Organization to prepare appropriate financial statements, including the SEFA. Cause: A reconciliation to the related expenditures from federal awards was not performed and would have identified the noted misstatement of the SEFA. Effect: Lack of effective controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected in a timely manner. Recommendation: The Organization should have effective internal controls in place to ensure that the SEFA is accurately prepared and reconciles to the related revenues and expenses recorded in the financial statements.
Schedule of Expenditures of Federal Awards Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: ISA-ARPA-ADWR-123022-01 - 2023 Pass-Through Agency: State of Arizona Governor’s Office Pass-Through Number(s): ERMT-20-002 Award Period: January 1, 2023 through January 1, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Under the U.S. Code of Federal Regulations Title 2, Part 200, Subpart F, Uniform Administrative requires certain auditee responsibilities identified in § 200.508 including the appropriate preparation of financial statements, including the schedule of expenditures of federal awards in accordance with § 200.510. Condition: The District's SEFA was overstated and revised by a known amount of $117,462 comprised of invoices incurred prior to the ARPA act that should not have been submitted under their ARPA grant allocation. Questioned costs: None Context: During our reconciliation of the schedule of expenditures of federal awards (SEFA) to the District's general ledger and invoice listings, it was determined various invoices for inventory/supplies purchases made prior to the ARPA act beginning period of July 1, 2021 were submitted for reimbursement under their ARPA allocation and were presented on the SEFA. The total overstatement and revision of the SEFA was $117,462. Cause: The District does not have effective internal controls in place to ensure compliance with the Uniform Guidance. Effect: The lack of internal controls over the provisions of allowable costs and period of performance compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the District design controls to ensure an adequate review process over the invoices recorded and presented on the schedule of expenditures of federal awards to determine compliance with the Uniform Guidance. Views of responsible officials and planned corrective actions: Management concurs with the finding, and as reported in the corrective action plan, District policies will be updated and approved to conform to federal guidance.
Assistance Listing, Federal Agency, and Program Name 21.027 U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year MH 1251 2023 Pass through Entity The Ohio Department of Mental Health and Addiction Services Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.508(b), an auditee must prepare appropriate financial statements, including the schedule of expenditures of federal awards, in accordance with 200.510 financial statements. Per 2 CFR 200.510(b), the auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502 basis for determining federal awards expended. Condition Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. Questioned Costs N/A 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 ProMedica did not initially include the funds received through the Ohio Department of Mental Health and Addiction Services Coronavirus State and Local Fiscal Recovery funds on the SEFA. Cause and Effect ProMedica has a process in place to identify all potential sources of federal funding received during the year, however they received some incorrect information when going through these procedures, resulting in the SEFA being incomplete for the year ended December 31, 2023. Upon discovery of the error, ProMedica prepared a SEFA that included the Ohio Department of Mental Health and Addiction Services Coronavirus State and Local Fiscal Recovery funds. This lack of controls resulted in the reissuance of the 2023 single audit. Recommendation Management should implement controls to ensure all federal funding received is properly identified as such and included on the SEFA. Views of Responsible Officials and Corrective Action Plan Management fully understands the importance of internal controls to ensure the schedule of federal expenditures is complete and accurate. The Grants Department will amend its current written processes regarding award establishment to include requiring documentation indicating an award is federal funds prior to establishing the project in Infor CloudSuite Financials & Supply Management (Accounting software). Additionally, the Grants Department will routinely audit the database the department utilizes to record awards to ensure the field to note federal awards is properly updated. Furthermore, the SEFA will be reviewed with documented sign-off by each member of the Grants Team prior to submission
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) 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. Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) 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. Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) 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. Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) 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. Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) 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. Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) 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. Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
2023-002 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Material Weakness – All Awards) (Repeated) 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. Condition and Context – The following errors were noted and corrected as a result of auditing procedures on the SEFA: • WIC food expenditures were overstated by $1,050,183 due to transposition errors in recording the August 2023 benefit entries, June 2023 benefit entries that were booked twice in error, as well as adjustments to the final profit and loss after the SEFA was prepared. • TANF expenditures over stated by $42,709 due to errors in reporting and including ME DHHS funds spent as opposed to federal funds. • Head Start expenditures were overstated by $70,718 as they included in-kind. Cause – Insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect – Errors on reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. The above corrections, if not made, would have led to the SEFA being materially misstated. They could also lead to findings and corrective action with funders. Questioned Costs – None Recommendations – Management should continue to seek additional training for the fiscal department on preparation of the SEFA and reporting standards. In addition, review processes over the SEFA and supporting reports should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Steps should be taken to prevent further adjustment of supporting profit and loss reports once reconciled without the express review and approval of the Fiscal Director. Review of the standards for supporting grant reports should be strengthened to prevent errors in reporting leading to errors on the SEFA. Any inconsistencies should be resolved before beginning the audit. Management has taken steps to identify and seek training in areas they have identified as needing improvement. Views of Responsible Officials and Planned Corrective Actions – The Director of Fiscal will seek additional training on the preparation of the SEFA schedule provided to auditors for new staff to participate in. Before submission to auditors there will be a check and review process in which the Fiscal Director or delegate will review the schedule and initial for a backup copy. All back up documentation will be provided during the submission so review by auditors will be clearer. For this review to take place there will be an internal review and check list provided. In fiscal year 2024 MMCA has engaged in a contract with a fiscal consultant. The plan to restructure the fiscal department will streamline processes and strengthen policies and procedures by giving different permissions in the software to post after approvals, review reports before submission and create a tier for audit procedures and tasks. MMCA will have the fiscal team engage in more professional development around auditing procedures in GAAP and MAAP to ensure all reports are correct before submission.
Finding Number: 2023-037 Prior Year Finding Number: N/A Compliance Requirement: Special Tests and Provisions – Key Employees Program: Government Department/Agency: U.S. Department of Health and Human Services Opioid STR ALN: 93.788 Award #: Various Award Year: 09/30/2020 – 09/29/2024 Department of Behavioral Health (DBH) Criteria - The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. 2 CFR 200.508(d) says an auditee must “provide the auditor with access to personnel, accounts, books, records, supporting documentation, and other information as needed for the auditor to perform the audit required by this part.” The grant agreements provide that the State must maintain certain key personnel. Key personnel are organization staff members or consultants/subrecipients who must be part of the project regardless of whether they receive a salary or compensation from the project. These individuals must make a substantial contribution to the execution of the project. Key Personnel for this program are the Project Director, Project Coordinator, and Data Coordinator at a 1.0 FTE (100 percent level of effort) for each position. This position requires prior approval by SAMHSA after a review of staff credentials and job descriptions. Any changes to key personnel, including level of effort involving separation from the project for more than three months or a 25 percent reduction in time dedicated to the project, requires prior approval, and must be submitted as a post-award amendment. Condition – During our testing of the key personnel requirement, we noted that for three (3) key employees tested out of three (3), we were unable to review documentation to support that the employee worked 100% on the award as required by the grant agreement. Questioned Costs – None. Context – This is a condition identified per review of DBH’s compliance with specified requirements using a statistically valid sample. Effect – There is a risk that employees are working on the program that are not approved by the granting agency. Cause – Management has not established internal control policies and procedures around communicating to the employees that they are being assigned to the Opioid program. Recommendation – We recommend that DBH develop and implement policies, procedures and controls to ensure proper documentation of the required and actual time and effort from key employees in accordance with grant requirements. Related Noncompliance – Noncompliance. Views of Responsible Officials and Planned Corrective Actions – DBH agrees with the findings and will put controls into place to resolve the issues. The District’s corrective action is described in the Management’s Corrective Action Plan included as Appendix B of the attached Management’s Section.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
f Expenditures of Federal Awards (Material Weakness – All Awards) 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. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was missing. • The Highway Planning and Construction CFDA # was incorrect. • The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304. • The Highway Planning and Construction expenditures were overstated by $6,282. • The SEFA did not include the State Small Business Credit Initiative program of $310,000. • COVID-19 labels were missing from two programs. • Award term was not included for any agreements. Questioned Costs – None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The contract documents did not include that information. We reported the revenue for the State and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred. We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to include Covid-19 labels and all the award dates in the future. We will for training to prepare a SEFA document, it will be on our professional development list in this year.
Finding 2023-003: Preparation of Schedule of Expenditures of Federal Awards (SEFA) Information on the Federal Programs: All Criteria: As noted in 2 CFR 200.508 “Auditee Responsibilities” indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 “Financial statements”). Title 2 CFR 200 Section 200.510 “Financial Statements” requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non- Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: NDRN experienced difficulty in preparing and ensuring that all Federal expenditures were identified, categorized, and included in the Schedule of Expenditures of Federal Awards. The preparation of NDRN's SEFA required manual adjustments of Federal costs. We noted that the manual adjustments were not completed prior to the start of the audit. Cause: The year-end close process did not provide for the preparation of a complete and accurate schedule of expenditures of Federal awards. Effect: Without periodic training and consistent application of NDRN’s internal policies and procedures, this could potentially result in unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: None noted. Context: Our audit testwork consisted of substantive procedures over the SEFA. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend NDRN establish internal controls to correctly identify and track all Federal awards received either directly or indirectly.
Finding 2023-003: Preparation of Schedule of Expenditures of Federal Awards (SEFA) Information on the Federal Programs: All Criteria: As noted in 2 CFR 200.508 “Auditee Responsibilities” indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 “Financial statements”). Title 2 CFR 200 Section 200.510 “Financial Statements” requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non- Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: NDRN experienced difficulty in preparing and ensuring that all Federal expenditures were identified, categorized, and included in the Schedule of Expenditures of Federal Awards. The preparation of NDRN's SEFA required manual adjustments of Federal costs. We noted that the manual adjustments were not completed prior to the start of the audit. Cause: The year-end close process did not provide for the preparation of a complete and accurate schedule of expenditures of Federal awards. Effect: Without periodic training and consistent application of NDRN’s internal policies and procedures, this could potentially result in unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: None noted. Context: Our audit testwork consisted of substantive procedures over the SEFA. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend NDRN establish internal controls to correctly identify and track all Federal awards received either directly or indirectly.
Finding 2023-003: Preparation of Schedule of Expenditures of Federal Awards (SEFA) Information on the Federal Programs: All Criteria: As noted in 2 CFR 200.508 “Auditee Responsibilities” indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 “Financial statements”). Title 2 CFR 200 Section 200.510 “Financial Statements” requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non- Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: NDRN experienced difficulty in preparing and ensuring that all Federal expenditures were identified, categorized, and included in the Schedule of Expenditures of Federal Awards. The preparation of NDRN's SEFA required manual adjustments of Federal costs. We noted that the manual adjustments were not completed prior to the start of the audit. Cause: The year-end close process did not provide for the preparation of a complete and accurate schedule of expenditures of Federal awards. Effect: Without periodic training and consistent application of NDRN’s internal policies and procedures, this could potentially result in unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: None noted. Context: Our audit testwork consisted of substantive procedures over the SEFA. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend NDRN establish internal controls to correctly identify and track all Federal awards received either directly or indirectly.
Finding 2023-003: Preparation of Schedule of Expenditures of Federal Awards (SEFA) Information on the Federal Programs: All Criteria: As noted in 2 CFR 200.508 “Auditee Responsibilities” indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 “Financial statements”). Title 2 CFR 200 Section 200.510 “Financial Statements” requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non- Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: NDRN experienced difficulty in preparing and ensuring that all Federal expenditures were identified, categorized, and included in the Schedule of Expenditures of Federal Awards. The preparation of NDRN's SEFA required manual adjustments of Federal costs. We noted that the manual adjustments were not completed prior to the start of the audit. Cause: The year-end close process did not provide for the preparation of a complete and accurate schedule of expenditures of Federal awards. Effect: Without periodic training and consistent application of NDRN’s internal policies and procedures, this could potentially result in unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: None noted. Context: Our audit testwork consisted of substantive procedures over the SEFA. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend NDRN establish internal controls to correctly identify and track all Federal awards received either directly or indirectly.
Finding 2023-003: Preparation of Schedule of Expenditures of Federal Awards (SEFA) Information on the Federal Programs: All Criteria: As noted in 2 CFR 200.508 “Auditee Responsibilities” indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 “Financial statements”). Title 2 CFR 200 Section 200.510 “Financial Statements” requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non- Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: NDRN experienced difficulty in preparing and ensuring that all Federal expenditures were identified, categorized, and included in the Schedule of Expenditures of Federal Awards. The preparation of NDRN's SEFA required manual adjustments of Federal costs. We noted that the manual adjustments were not completed prior to the start of the audit. Cause: The year-end close process did not provide for the preparation of a complete and accurate schedule of expenditures of Federal awards. Effect: Without periodic training and consistent application of NDRN’s internal policies and procedures, this could potentially result in unreliable and erroneous grant reporting, internal record keeping and decision making. Questioned Costs: None noted. Context: Our audit testwork consisted of substantive procedures over the SEFA. We determined that the issue was systemic in nature. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend NDRN establish internal controls to correctly identify and track all Federal awards received either directly or indirectly.
Finding 2003-04: Schedule of Expenditures of Federal Awards Information on the Federal Program: All programs in the 2023 SEFA. See Finding 2023-003 Questioned Costs: None. Context: The exception noted during the audit pertained to all programs under the SEFA for the year ended September 30, 2023. Identification as a Repeat Finding, if Applicable: Not applicable. Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), HIPS is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: During the audit, we noted that HIPS experienced difficulty in preparing and ensuring that all Federal expenditures were properly included in the Schedule of Expenditures of Federal Awards. As a result, a significant amount of time was spent by management during the audit process reconciling the schedule, resulting in an audit delay. Cause: HIPS experienced turnover during the last fiscal year, specifically related to employees responsible for financial reporting and tracking of Federal award expenditures. Effect or Potential Effect: HIPS experienced difficulty in preparing an accurate SEFA. Recommendation: We recommend that each Federal program should have a distinct code set up in the accounting system in order to track the direct costs attributable to that program. We also recommend that management properly reconcile Federal expenditures during year on a consistent basis in order to prepare the Schedule of Expenditures of Federal Awards on a timely basis.
Finding 2003-04: Schedule of Expenditures of Federal Awards Information on the Federal Program: All programs in the 2023 SEFA. See Finding 2023-003 Questioned Costs: None. Context: The exception noted during the audit pertained to all programs under the SEFA for the year ended September 30, 2023. Identification as a Repeat Finding, if Applicable: Not applicable. Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), HIPS is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: During the audit, we noted that HIPS experienced difficulty in preparing and ensuring that all Federal expenditures were properly included in the Schedule of Expenditures of Federal Awards. As a result, a significant amount of time was spent by management during the audit process reconciling the schedule, resulting in an audit delay. Cause: HIPS experienced turnover during the last fiscal year, specifically related to employees responsible for financial reporting and tracking of Federal award expenditures. Effect or Potential Effect: HIPS experienced difficulty in preparing an accurate SEFA. Recommendation: We recommend that each Federal program should have a distinct code set up in the accounting system in order to track the direct costs attributable to that program. We also recommend that management properly reconcile Federal expenditures during year on a consistent basis in order to prepare the Schedule of Expenditures of Federal Awards on a timely basis.
Finding 2003-04: Schedule of Expenditures of Federal Awards Information on the Federal Program: All programs in the 2023 SEFA. See Finding 2023-003 Questioned Costs: None. Context: The exception noted during the audit pertained to all programs under the SEFA for the year ended September 30, 2023. Identification as a Repeat Finding, if Applicable: Not applicable. Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), HIPS is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: During the audit, we noted that HIPS experienced difficulty in preparing and ensuring that all Federal expenditures were properly included in the Schedule of Expenditures of Federal Awards. As a result, a significant amount of time was spent by management during the audit process reconciling the schedule, resulting in an audit delay. Cause: HIPS experienced turnover during the last fiscal year, specifically related to employees responsible for financial reporting and tracking of Federal award expenditures. Effect or Potential Effect: HIPS experienced difficulty in preparing an accurate SEFA. Recommendation: We recommend that each Federal program should have a distinct code set up in the accounting system in order to track the direct costs attributable to that program. We also recommend that management properly reconcile Federal expenditures during year on a consistent basis in order to prepare the Schedule of Expenditures of Federal Awards on a timely basis.
Finding 2003-04: Schedule of Expenditures of Federal Awards Information on the Federal Program: All programs in the 2023 SEFA. See Finding 2023-003 Questioned Costs: None. Context: The exception noted during the audit pertained to all programs under the SEFA for the year ended September 30, 2023. Identification as a Repeat Finding, if Applicable: Not applicable. Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), HIPS is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: During the audit, we noted that HIPS experienced difficulty in preparing and ensuring that all Federal expenditures were properly included in the Schedule of Expenditures of Federal Awards. As a result, a significant amount of time was spent by management during the audit process reconciling the schedule, resulting in an audit delay. Cause: HIPS experienced turnover during the last fiscal year, specifically related to employees responsible for financial reporting and tracking of Federal award expenditures. Effect or Potential Effect: HIPS experienced difficulty in preparing an accurate SEFA. Recommendation: We recommend that each Federal program should have a distinct code set up in the accounting system in order to track the direct costs attributable to that program. We also recommend that management properly reconcile Federal expenditures during year on a consistent basis in order to prepare the Schedule of Expenditures of Federal Awards on a timely basis.
Finding 2003-04: Schedule of Expenditures of Federal Awards Information on the Federal Program: All programs in the 2023 SEFA. See Finding 2023-003 Questioned Costs: None. Context: The exception noted during the audit pertained to all programs under the SEFA for the year ended September 30, 2023. Identification as a Repeat Finding, if Applicable: Not applicable. Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), HIPS is required to prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA). Condition: During the audit, we noted that HIPS experienced difficulty in preparing and ensuring that all Federal expenditures were properly included in the Schedule of Expenditures of Federal Awards. As a result, a significant amount of time was spent by management during the audit process reconciling the schedule, resulting in an audit delay. Cause: HIPS experienced turnover during the last fiscal year, specifically related to employees responsible for financial reporting and tracking of Federal award expenditures. Effect or Potential Effect: HIPS experienced difficulty in preparing an accurate SEFA. Recommendation: We recommend that each Federal program should have a distinct code set up in the accounting system in order to track the direct costs attributable to that program. We also recommend that management properly reconcile Federal expenditures during year on a consistent basis in order to prepare the Schedule of Expenditures of Federal Awards on a timely basis.