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.
Assistance Listing, Federal Agency, and Program Name 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, CDBG Entitlement Grants Cluster Community Development Block Grant Federal Award Identification Number and Year N/A Pass through Entity ALN 14.218 Wayne County Finding Type Material weakness Repeat Finding Yes 2022 002 Criteria The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context During the fiscal year ended September 30, 2023, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $689,255. ALN 14.218 The expenditures reported on the SEFA were understated by $55,192. The errors noted above have been corrected on the SEFA as of September 30, 2023. Cause and Effect Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000 and, therefore, a single audit was not needed. Recommendation We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.
Assistance Listing, Federal Agency, and Program Name 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, CDBG Entitlement Grants Cluster Community Development Block Grant Federal Award Identification Number and Year N/A Pass through Entity ALN 14.218 Wayne County Finding Type Material weakness Repeat Finding Yes 2022 002 Criteria The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context During the fiscal year ended September 30, 2023, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $689,255. ALN 14.218 The expenditures reported on the SEFA were understated by $55,192. The errors noted above have been corrected on the SEFA as of September 30, 2023. Cause and Effect Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000 and, therefore, a single audit was not needed. Recommendation We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.
Assistance Listing Number, Federal Agency, and Program Name - ALN 66.458, U.S. Environment Protection Agency Capitalization Grants for Clean Water State Revolving Funds (CWSRF) Federal Award Identification Number and Year - Project Number 5834 01 (2023) Pass through Entity - Michigan Department Environment, Great Lakes and Energy Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must prepare appropriate financial statements, including the schedule of expenditures of federal awards, in accordance with 200.510 financial statements. Per 2 CFR 200.510(b), the auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502 basis for determining federal awards expended. Condition - Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. If Questioned Costs Are Not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could Not Be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - The County did not initially include the funds received through the Capitalization Grants for Clean Water State Revolving Funds. Cause and Effect - The County did not have a process in place to identify all potential sources of federal funding received during the year, resulting in the SEFA being incomplete for the year ended September 30, 2023. Upon discovery of the error, the County prepared a SEFA that included the Capitalization Grants for Clean Water State Revolving Funds. This lack of controls resulted in the reissuance of the 2023 single audit. Recommendation - Management should implement controls to ensure all federal funding received is properly identified as such and included on the SEFA. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding as reported. The federal funding was not received until fiscal year 2023, while expenditures were incurred prior to fiscal year 2023. The timing of events contributed to the oversight on the 2023 SEFA. The County has reeducated staff on the preparation of the SEFA in order to prevent this error from reoccurring.
2023-02 Expenditures of Federal Awards Internal Control and Compliance AL/CFDA#: 93.243 Federal Program: Substance Abuse and Mental Health Services Projects of Regional and National Significance Criteria: The Uniform Guidance-2CFR 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.” Also, the Uniform Guidance §200.512 requires “the audit be completed and the data collection form described in paragraph (b) of this section must be submitted within the earlier of 30 calendar days after receipts of the auditor’s report(s), or nine months after the end of the audit period.” Condition: The NIWHRC experienced a change in the Executive Director and also in their accounting firm during the period under audit. The NIWHRC also experienced difficulty in finding a qualified audit firm to perform the audit. Cause and Effect: NIWHRC is out of compliance with the reporting deadline for the audit. Recommendation: I recommend the NIWHRC develop policy and procedures to ensure the organization remains in compliance with federal award obligations. Responsible Official's Response: The Executive Director has returned from sabbatical and has resumed duties and the NIWHRC has engaged a CPA audit firm.
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.
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.
Assistance Listing, Federal Agency, and Program Name 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, CDBG Entitlement Grants Cluster Community Development Block Grant Federal Award Identification Number and Year N/A Pass through Entity ALN 14.218 Wayne County Finding Type Material weakness Repeat Finding Yes 2022 002 Criteria The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context During the fiscal year ended September 30, 2023, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $689,255. ALN 14.218 The expenditures reported on the SEFA were understated by $55,192. The errors noted above have been corrected on the SEFA as of September 30, 2023. Cause and Effect Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000 and, therefore, a single audit was not needed. Recommendation We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.
Assistance Listing, Federal Agency, and Program Name 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, CDBG Entitlement Grants Cluster Community Development Block Grant Federal Award Identification Number and Year N/A Pass through Entity ALN 14.218 Wayne County Finding Type Material weakness Repeat Finding Yes 2022 002 Criteria The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context During the fiscal year ended September 30, 2023, the City expended approximately $921,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 66.818 The expenditures reported on the SEFA were understated by $689,255. ALN 14.218 The expenditures reported on the SEFA were understated by $55,192. The errors noted above have been corrected on the SEFA as of September 30, 2023. Cause and Effect Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Additionally, the understatement of federal expenditures on the SEFA resulted in the incorrect conclusion that federal activity was below $750,000 and, therefore, a single audit was not needed. Recommendation We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan The City will review its process for identifying and communicating Federal Grant expenditures to its auditors.
Assistance Listing Number, Federal Agency, and Program Name - ALN 66.458, U.S. Environment Protection Agency Capitalization Grants for Clean Water State Revolving Funds (CWSRF) Federal Award Identification Number and Year - Project Number 5834 01 (2023) Pass through Entity - Michigan Department Environment, Great Lakes and Energy Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must prepare appropriate financial statements, including the schedule of expenditures of federal awards, in accordance with 200.510 financial statements. Per 2 CFR 200.510(b), the auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502 basis for determining federal awards expended. Condition - Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. If Questioned Costs Are Not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could Not Be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - The County did not initially include the funds received through the Capitalization Grants for Clean Water State Revolving Funds. Cause and Effect - The County did not have a process in place to identify all potential sources of federal funding received during the year, resulting in the SEFA being incomplete for the year ended September 30, 2023. Upon discovery of the error, the County prepared a SEFA that included the Capitalization Grants for Clean Water State Revolving Funds. This lack of controls resulted in the reissuance of the 2023 single audit. Recommendation - Management should implement controls to ensure all federal funding received is properly identified as such and included on the SEFA. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding as reported. The federal funding was not received until fiscal year 2023, while expenditures were incurred prior to fiscal year 2023. The timing of events contributed to the oversight on the 2023 SEFA. The County has reeducated staff on the preparation of the SEFA in order to prevent this error from reoccurring.
2023-02 Expenditures of Federal Awards Internal Control and Compliance AL/CFDA#: 93.243 Federal Program: Substance Abuse and Mental Health Services Projects of Regional and National Significance Criteria: The Uniform Guidance-2CFR 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.” Also, the Uniform Guidance §200.512 requires “the audit be completed and the data collection form described in paragraph (b) of this section must be submitted within the earlier of 30 calendar days after receipts of the auditor’s report(s), or nine months after the end of the audit period.” Condition: The NIWHRC experienced a change in the Executive Director and also in their accounting firm during the period under audit. The NIWHRC also experienced difficulty in finding a qualified audit firm to perform the audit. Cause and Effect: NIWHRC is out of compliance with the reporting deadline for the audit. Recommendation: I recommend the NIWHRC develop policy and procedures to ensure the organization remains in compliance with federal award obligations. Responsible Official's Response: The Executive Director has returned from sabbatical and has resumed duties and the NIWHRC has engaged a CPA audit firm.
Failure to inform auditors of the need for a single audit. Federal programs impacted: All ALNs, see SEFA. (General) Questioned Costs: None, NA Condition: The Clinic expended more than $750,000 in federal awards, triggering a single audit requirement and did not bring this to the auditors attention during the audit. The Clininc failed to properly maintain appropriate records to determine the need for a single audit as required by Uniform Guidance. Criteria: 2 CFR section 200.508(b)&(d) states that one responsibility of the auditee is to prepare appropriate financial statements, including the SEFA in accordance with 200.510. Part (d) states they must provide auditor with information as needed to perform the audit required. See also section 99.300(a). Cause: The Clinic did not have proper controls in place to determine the need for a single audit as required by the Uniform Guidance. Effect: Engagement letter and fees had to be reevaluated, and the nature, timing, and extent of the audit were impacted by the additional requirement. Recommendation: We recommend that the Clinic develops and implements policies and procedures to properly prepare the SEFA. Management Response: Management stated they will do a better job of tracking federal expenditures for the next audit year as they do not want to trigger a single audit again knowingly or otherwise and do not want any delays in the audit like this year.