Finding 2022 – 008: Reporting: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) (Repeat Finding: 2019-007, 2020-007 and 2021-006) Criteria: Uniform Guidance 2 CFR §200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements [that]… at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expenditures for each individual Federal program and the Assistance Listing Number (ALN) or other identifying number when the ALN information is not available.” In accordance with Uniform Guidance, the Governmental Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition: During fiscal year 2022, the Governmental Department did not have sufficient controls to ensure the SEFA accurately reflected each award’s federal expenditures. There were differences noted in reconciling expenditures from the original SEFA to the trial balance, and it was discovered that certain adjustments for grants receivable, unearned revenues and grant revenue had not been made in order to properly report total federal expenditures. These errors were corrected through adjustments proposed as part of the audit, and the final version of the SEFA reconciles to the Governmental Department’s general ledger. Questioned Costs: None Cause: Insufficient training or understanding of Uniform Guidance, including some of the required elements of the SEFA, contributed to this finding. Effect: The Governmental Department was not able to produce an accurate and timely SEFA, which required additional effort and resources by the Governmental Department and auditor during the audit process. Recommendation: We recommend that the Governmental Department becomes familiar with the SEFA reporting elements required by Uniform Guidance and develop and implement a review process to ensure compliance with those reporting requirements. These processes and controls should include reconciling SEFA federal expenditures to the current year general ledger expenditures and reviewing other grant related information to ensure accuracy. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Finding 2022 – 008: Reporting: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) (Repeat Finding: 2019-007, 2020-007 and 2021-006) Criteria: Uniform Guidance 2 CFR §200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements [that]… at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expenditures for each individual Federal program and the Assistance Listing Number (ALN) or other identifying number when the ALN information is not available.” In accordance with Uniform Guidance, the Governmental Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition: During fiscal year 2022, the Governmental Department did not have sufficient controls to ensure the SEFA accurately reflected each award’s federal expenditures. There were differences noted in reconciling expenditures from the original SEFA to the trial balance, and it was discovered that certain adjustments for grants receivable, unearned revenues and grant revenue had not been made in order to properly report total federal expenditures. These errors were corrected through adjustments proposed as part of the audit, and the final version of the SEFA reconciles to the Governmental Department’s general ledger. Questioned Costs: None Cause: Insufficient training or understanding of Uniform Guidance, including some of the required elements of the SEFA, contributed to this finding. Effect: The Governmental Department was not able to produce an accurate and timely SEFA, which required additional effort and resources by the Governmental Department and auditor during the audit process. Recommendation: We recommend that the Governmental Department becomes familiar with the SEFA reporting elements required by Uniform Guidance and develop and implement a review process to ensure compliance with those reporting requirements. These processes and controls should include reconciling SEFA federal expenditures to the current year general ledger expenditures and reviewing other grant related information to ensure accuracy. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Finding 2022 – 008: Reporting: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) (Repeat Finding: 2019-007, 2020-007 and 2021-006) Criteria: Uniform Guidance 2 CFR §200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements [that]… at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expenditures for each individual Federal program and the Assistance Listing Number (ALN) or other identifying number when the ALN information is not available.” In accordance with Uniform Guidance, the Governmental Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition: During fiscal year 2022, the Governmental Department did not have sufficient controls to ensure the SEFA accurately reflected each award’s federal expenditures. There were differences noted in reconciling expenditures from the original SEFA to the trial balance, and it was discovered that certain adjustments for grants receivable, unearned revenues and grant revenue had not been made in order to properly report total federal expenditures. These errors were corrected through adjustments proposed as part of the audit, and the final version of the SEFA reconciles to the Governmental Department’s general ledger. Questioned Costs: None Cause: Insufficient training or understanding of Uniform Guidance, including some of the required elements of the SEFA, contributed to this finding. Effect: The Governmental Department was not able to produce an accurate and timely SEFA, which required additional effort and resources by the Governmental Department and auditor during the audit process. Recommendation: We recommend that the Governmental Department becomes familiar with the SEFA reporting elements required by Uniform Guidance and develop and implement a review process to ensure compliance with those reporting requirements. These processes and controls should include reconciling SEFA federal expenditures to the current year general ledger expenditures and reviewing other grant related information to ensure accuracy. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Finding 2022 – 008: Reporting: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) (Repeat Finding: 2019-007, 2020-007 and 2021-006) Criteria: Uniform Guidance 2 CFR §200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements [that]… at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expenditures for each individual Federal program and the Assistance Listing Number (ALN) or other identifying number when the ALN information is not available.” In accordance with Uniform Guidance, the Governmental Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition: During fiscal year 2022, the Governmental Department did not have sufficient controls to ensure the SEFA accurately reflected each award’s federal expenditures. There were differences noted in reconciling expenditures from the original SEFA to the trial balance, and it was discovered that certain adjustments for grants receivable, unearned revenues and grant revenue had not been made in order to properly report total federal expenditures. These errors were corrected through adjustments proposed as part of the audit, and the final version of the SEFA reconciles to the Governmental Department’s general ledger. Questioned Costs: None Cause: Insufficient training or understanding of Uniform Guidance, including some of the required elements of the SEFA, contributed to this finding. Effect: The Governmental Department was not able to produce an accurate and timely SEFA, which required additional effort and resources by the Governmental Department and auditor during the audit process. Recommendation: We recommend that the Governmental Department becomes familiar with the SEFA reporting elements required by Uniform Guidance and develop and implement a review process to ensure compliance with those reporting requirements. These processes and controls should include reconciling SEFA federal expenditures to the current year general ledger expenditures and reviewing other grant related information to ensure accuracy. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Finding 2022 – 008: Reporting: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) (Repeat Finding: 2019-007, 2020-007 and 2021-006) Criteria: Uniform Guidance 2 CFR §200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements [that]… at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expenditures for each individual Federal program and the Assistance Listing Number (ALN) or other identifying number when the ALN information is not available.” In accordance with Uniform Guidance, the Governmental Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition: During fiscal year 2022, the Governmental Department did not have sufficient controls to ensure the SEFA accurately reflected each award’s federal expenditures. There were differences noted in reconciling expenditures from the original SEFA to the trial balance, and it was discovered that certain adjustments for grants receivable, unearned revenues and grant revenue had not been made in order to properly report total federal expenditures. These errors were corrected through adjustments proposed as part of the audit, and the final version of the SEFA reconciles to the Governmental Department’s general ledger. Questioned Costs: None Cause: Insufficient training or understanding of Uniform Guidance, including some of the required elements of the SEFA, contributed to this finding. Effect: The Governmental Department was not able to produce an accurate and timely SEFA, which required additional effort and resources by the Governmental Department and auditor during the audit process. Recommendation: We recommend that the Governmental Department becomes familiar with the SEFA reporting elements required by Uniform Guidance and develop and implement a review process to ensure compliance with those reporting requirements. These processes and controls should include reconciling SEFA federal expenditures to the current year general ledger expenditures and reviewing other grant related information to ensure accuracy. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Finding 2022 – 008: Reporting: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) (Repeat Finding: 2019-007, 2020-007 and 2021-006) Criteria: Uniform Guidance 2 CFR §200.510 requires an auditee to “prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements [that]… at a minimum shall…list individual Federal programs by Federal agency… [and] provide total Federal awards expenditures for each individual Federal program and the Assistance Listing Number (ALN) or other identifying number when the ALN information is not available.” In accordance with Uniform Guidance, the Governmental Department is required to maintain a structure of internal control to ensure compliance with applicable reporting requirements. Condition: During fiscal year 2022, the Governmental Department did not have sufficient controls to ensure the SEFA accurately reflected each award’s federal expenditures. There were differences noted in reconciling expenditures from the original SEFA to the trial balance, and it was discovered that certain adjustments for grants receivable, unearned revenues and grant revenue had not been made in order to properly report total federal expenditures. These errors were corrected through adjustments proposed as part of the audit, and the final version of the SEFA reconciles to the Governmental Department’s general ledger. Questioned Costs: None Cause: Insufficient training or understanding of Uniform Guidance, including some of the required elements of the SEFA, contributed to this finding. Effect: The Governmental Department was not able to produce an accurate and timely SEFA, which required additional effort and resources by the Governmental Department and auditor during the audit process. Recommendation: We recommend that the Governmental Department becomes familiar with the SEFA reporting elements required by Uniform Guidance and develop and implement a review process to ensure compliance with those reporting requirements. These processes and controls should include reconciling SEFA federal expenditures to the current year general ledger expenditures and reviewing other grant related information to ensure accuracy. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Assistance Listing Number, 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, Community Development Block Grant Entitlement Grants Cluster Federal Award Identification Number and Year - N/A Passthrough Entity - 66.818, Brownfields Assessment and Cleanup of Cooperative Agreements is direct funded. 14.218, Community Development Block Grant is passed through Wayne County, Michigan. Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year ended September 30, 2022, 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 $125,687. ALN 14.218 The expenditures reported on the SEFA were understated by $80,468. The errors noted above have been corrected on the SEFA as of September 30, 2022. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit, as the City did not include use of program income in its review of federal expenditures. The errors resulted in the understatement of federal expenditures, as noted in the context above. 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 - 66.818, U.S. Environmental Protection Agency, Brownfields Assessment and Cleanup Cooperative Agreements; 14.218, U.S. Department of Housing and Urban Development, Community Development Block Grant Entitlement Grants Cluster Federal Award Identification Number and Year - N/A Passthrough Entity - 66.818, Brownfields Assessment and Cleanup of Cooperative Agreements is direct funded. 14.218, Community Development Block Grant is passed through Wayne County, Michigan. Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of Federal awards in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (SEFA) was not accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - During the fiscal year ended September 30, 2022, 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 $125,687. ALN 14.218 The expenditures reported on the SEFA were understated by $80,468. The errors noted above have been corrected on the SEFA as of September 30, 2022. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit, as the City did not include use of program income in its review of federal expenditures. The errors resulted in the understatement of federal expenditures, as noted in the context above. 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.
Finding 2022 – 006: Reporting - Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Criteria: Uniform Guidance 2 CFR § 200.510 requires an auditee to "prepare a schedule of expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements [that]… at a minimum shall… list individual Federal programs by Federal agency... [and] provide total Federal awards expenditures for each individual Federal program and the Assistance Listing number or other identifying number when the ALN information is not available." In accordance with Uniform Guidance, the auditee is required to maintain a structure of internal controls to ensure compliance with applicable reporting requirements. Condition: During fiscal year 2022, the Organization did not have adequate controls in place to ensure the SEFA accurately reflected each award's federal agency and assistance listing number. There were differences between the SEFA and the grant agreements/compliance supplements, requiring adjustments to the SEFA. Questioned Costs: None. Cause: A lack of sufficient training or understanding of Uniform Guidance requirements, particularly related to SEFA reporting elements, contributed to this finding. Effect: The Organization was unable to produce an accurate and timely SEFA, requiring additional effort and resources from both the Organization and the auditor to correct reporting errors during the audit process. Recommendation: We recommend the Organization enhance its understanding of SEFA reporting requirements under Uniform Guidance, develop and implement a structured review process to ensure compliance with those reporting requirements, reconcile federal expenditures reported on the SEFA to the amounts recorded in the general ledger, and review federal agency names and assistance listing numbers against grant documentation to ensure accuracy. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
Finding 2022 – 006: Reporting - Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Criteria: Uniform Guidance 2 CFR § 200.510 requires an auditee to "prepare a schedule of expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements [that]… at a minimum shall… list individual Federal programs by Federal agency... [and] provide total Federal awards expenditures for each individual Federal program and the Assistance Listing number or other identifying number when the ALN information is not available." In accordance with Uniform Guidance, the auditee is required to maintain a structure of internal controls to ensure compliance with applicable reporting requirements. Condition: During fiscal year 2022, the Organization did not have adequate controls in place to ensure the SEFA accurately reflected each award's federal agency and assistance listing number. There were differences between the SEFA and the grant agreements/compliance supplements, requiring adjustments to the SEFA. Questioned Costs: None. Cause: A lack of sufficient training or understanding of Uniform Guidance requirements, particularly related to SEFA reporting elements, contributed to this finding. Effect: The Organization was unable to produce an accurate and timely SEFA, requiring additional effort and resources from both the Organization and the auditor to correct reporting errors during the audit process. Recommendation: We recommend the Organization enhance its understanding of SEFA reporting requirements under Uniform Guidance, develop and implement a structured review process to ensure compliance with those reporting requirements, reconcile federal expenditures reported on the SEFA to the amounts recorded in the general ledger, and review federal agency names and assistance listing numbers against grant documentation to ensure accuracy. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.
2022-002 ? Internal Control over Compliance and Compliance with Reporting (Preparation of Schedule of Expenditures of Federal Awards) Information on the Federal Program: U.S. Small Business Administration Assistance Listing Number: 59.008 Assistance Listing Name: Economic Injury Disaster Loan Criteria ? The Code of Federal Regulation (CFR) Section ?200.510(b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section ?200.502 Basis for determining Federal awards expended.? The schedule must provide total Federal awards expended for each individual Federal program. In accordance with ?200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal entity must provide for the following: (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?200.328 Financial Reporting and ?200.329 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Condition ? During the year ended August 31, 2022, the Center received additional EIDL funds. Prior to the COVID-19 pandemic, the Center did not receive and spend federal dollars in excess of the limit that required a single audit to be performed. Due to the lack of expertise surrounding the preparation of the SEFA and the non-recurring nature of the COVID-19 pandemic relief funding provided by the federal government, the Center was uncertain of some of the specifics on the SEFA statement. Cause ? The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to new funding received in the current year. Effect ? Management was unaware that the EIDL was a federal award requiring a single audit prior to discussion with the auditors. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the Center?s major program and our overall testing of the accuracy of the SEFA. The nature of this findings is detailed in the condition section above. Repeat Finding: This is not a repeat finding. Recommendation ? We recommend management attend Federal award trainings and information to ensure the documented policies and procedures can be performed as described. This will ensure the Federal funds are reported accurately on the SEFA and that programs are reported under the correct assistance listing number. Views of Responsible Officials ? Beck Center for the Arts concurs with the finding and the recommendation. The Center will continue to review federal award guidance and requirements to ensure compliance with current and future federal awards. The Center?s corrective action plan is described in Managements Corrective Action Plan included at page 42 of this reporting package.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
Material Weakness in Internal Control Over Grant Reporting Assistance Listing Numbers 21.027 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Program Federal Agency U.S. Department of Treasury Passthrough Agency Not applicable Award Number/Year 2022 Criteria The County is required to maintain a system of controls over the preparation of its Schedule of Expenditures of Federal Awards (SEFA) per the Uniform Guidance at 2 CFR 200.510(b) and its Consolidated Year-End Financial Report (CYEFR) in compliance with the 30 ILCS 708/1 Grant Accountability and Transparency Act (GATA). Condition The County did not have a centralized process for maintaining its grant accounting records and related supporting documentation to ensure that all federal grants expenditures were included on its SEFA and to ensure that all state grant expenditures were included on its CYEFR for fiscal year 2022. The County’s expenditures totaling $499,973 for its CSLFRF program were not included in its original SEFA which resulted in the SEFA being materially misstated. Additionally, it appears that certain offices and departments are noncompliant with the County’s financial policy that requires that all financial accounting records and related supporting documentation be provided to the County Treasurer so that the County Treasurer can maintain a complete set of grant accounting records for the entire County. Cause The County does not have internal personnel or contracted personnel with the requisite knowledge and experience to prepare its SEFA and CYEFR. Additionally, offices and departments within the County that receive and administer grants maintain the grant accounting records and related supporting documentation independent of the County Treasurer. These offices and departments provide the grant expenditures that are included in the CYEFR but do not consistently provide the detailed grant accounting records for use to prepare the SEFA and CYEFR. Effect Allowing these conditions to persist puts the County, its management and the Board of Commissioners at risk of 1) material misstatements being included in the County’s SEFA and CYEFR without being detected and noncompliance with grant agreements. These conditions could also result in a suspension of funding from grant funding sources, investigations of potential abuse and/or misappropriation of grant funds, and orders to return grant funds. Recommendation We recommend that management either 1) provide training for its key accounting personnel so that they will be able to prepare SEFA and CYEFR for the County and/or 2) contract with an accountant or firm that has the relevant skills, knowledge and experience to prepare the SEFA and CYEFR. We further recommend that the Board of Commissioners enforce the County’s policy of requiring that all accounting records and related supporting documentation be made available to the County Treasurer so that there is a process in which all of the County’s financial activity pertaining to grants is compiled, reconciled and included in a complete set of grant financial reports utilized to prepare the SEFA and CYEFR for the County. Questioned Costs None noted. Repeat Finding Yes. This finding also occurred in 2020 (2020-003) and 2019 (2019-002). Views of Responsible Officials and Planned Corrective Actions See corrective action plan.
2022-002 ? Internal Control over Compliance and Compliance with Reporting (Preparation of Schedule of Expenditures of Federal Awards) Information on the Federal Program: U.S. Small Business Administration Assistance Listing Number: 59.008 Assistance Listing Name: Economic Injury Disaster Loan Criteria ? The Code of Federal Regulation (CFR) Section ?200.510(b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section ?200.502 Basis for determining Federal awards expended.? The schedule must provide total Federal awards expended for each individual Federal program. In accordance with ?200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal entity must provide for the following: (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in ?200.328 Financial Reporting and ?200.329 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Condition ? During the year ended August 31, 2022, the Center received additional EIDL funds. Prior to the COVID-19 pandemic, the Center did not receive and spend federal dollars in excess of the limit that required a single audit to be performed. Due to the lack of expertise surrounding the preparation of the SEFA and the non-recurring nature of the COVID-19 pandemic relief funding provided by the federal government, the Center was uncertain of some of the specifics on the SEFA statement. Cause ? The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to new funding received in the current year. Effect ? Management was unaware that the EIDL was a federal award requiring a single audit prior to discussion with the auditors. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of the Center?s major program and our overall testing of the accuracy of the SEFA. The nature of this findings is detailed in the condition section above. Repeat Finding: This is not a repeat finding. Recommendation ? We recommend management attend Federal award trainings and information to ensure the documented policies and procedures can be performed as described. This will ensure the Federal funds are reported accurately on the SEFA and that programs are reported under the correct assistance listing number. Views of Responsible Officials ? Beck Center for the Arts concurs with the finding and the recommendation. The Center will continue to review federal award guidance and requirements to ensure compliance with current and future federal awards. The Center?s corrective action plan is described in Managements Corrective Action Plan included at page 42 of this reporting package.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.
Preparation of Schedule of Expenditures of Federal Awards (All Federal Awards) Condition: The District did not prepare a Schedule of Expenditures of Federal Awards (SEFA). Criteria: 2CFR Section 200.510(b) of Uniform Guidance requires minimum data elements for preparation of the Schedule of Expenditures of Federal Awards. Effect of the Condition: Corrections were required to have accurate figures, determination of clusters, and listing by programs of federal agency. Cause of the Condition: The District separately lists federal expenditures using a specific grouping number for each grant separately and relies on this information for tracking federal revenue and expenditures. Recommendation: The District should document each federal program including the federal agency, clusters, and total federal expenditures. Auditee Response: Management will complete the SEFA annually in future years.