Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Internal Control over Compliance - Timing of Expenditures Reported in the Schedule of Expenditure of Federal Awards (SEFA) Requires Alignment with Federal Guidelines Federal Program Information: Federal Assistance Listing Number: 16.753 Federal Program Name: Byrne Discretionary Community Project Funding /Byrne Discretionary Grants Program Federal Agency: U.S. Department of Justice Pass-through Agency: State of California Bureau of Justice Assistance Federal Award Number: 15PBJA-22-GG-00264-BRND Federal Award Year: March 15, 2022 to September 30, 2023 Criteria: Per 2 CFR 200.510(b), Financial Statements: Schedule of Expenditures of Federal Awards (SEFA), the SEFA must include the total federal awards expended, as determined in accordance with 2 CFR 200.502, Basis for Determining Federal Awards Expended, and must align with the same reporting period as the auditee's financial statements. 2 CFR 200.502(a) specifies that the timing of when a federal award is expended is based on the occurrence of the activity related to the award. Additionally, 2 CFR 200.328, Financial Reporting, emphasizes the importance of submitting performance and financial reports that are complete, accurate, and consistent with the accounting records. Specifically: • Financial data must be derived from and consistent with the recipient's accounting records. • Reports must include all financial information in accordance with federal requirements. Condition: During our audit, we identified a discrepancy involving the federal expenditures for the Byrne Discretionary Community Project Funding/Byrne Discretionary Grants Program, totaling $1,000,000. These expenditures were incurred in FY 2023 but were reported in the SEFA for FY 2024. Additionally, we noted that the reports submitted to the federal agency lacked evident review controls to verify their completeness, accuracy, and consistency with accounting records. Cause and Effect: The City inadvertently excluded the federal expenditure for this grant from the FY2023 SEFA due to an unintentional oversight. This error was later identified and addressed by including the expenditure in the FY2024 SEFA. The oversight occurred because the equipment expenditure tied to this grant was recorded with an effective date of June 2023, while the corresponding grant funds were received and recorded in November 2023. This misalignment in timing created confusion regarding the proper fiscal year in which the expenditure should be reported. Additionally, this was a one-time funding and expenditure, and the City lacked prior experience in both receiving and reporting such grants. The absence of established procedures or review controls specific to this type of funding further contributed to the oversight. Collectively, these factors led to the omission of the expenditure from the FY 2023 SEFA, highlighting the need for improved processes to prevent similar issues in the future. Recommendation: We recommend that the City implement enhanced procedures for reviewing and reconciling grant-related expenditures and receipts to ensure accurate and timely reporting in the SEFA. Specifically, the City should: • Establish a process to track one-time or unique grants separately to ensure their proper inclusion in the correct fiscal year. • Conduct cross-departmental reviews to align the timing of expenditure recording with grant fund receipts. • Provide training to staff on federal reporting requirements, including the accurate preparation of the SEFA in compliance with 2 CFR 200.510(b) and 2 CFR 200.502(a). • Periodically audit SEFA preparation processes to identify and address any potential discrepancies promptly. • Implement thorough pre-submission reviews to ensure reports are accurate, complete, and consistent with accounting records, using checklists or tools if necessary. Views of Responsible Officials and Planned Corrective Action: The City internally identify improvement opportunities in managing grants. As a part of the City’s grant oversight improvement efforts, the City began implementing various processes and internal controls surrounding grant monitoring, which improves the SEFA drafting process and mitigates risks of future inaccuracies. These efforts began in early 2024 and include the following: • Creation of a grant policy that provides City staff with guidance, information, and expectations surrounding grants. • Creation of a master grants database that lists the general ledger fund, applicable project ledger references, status, grant type, start/end dates, granting agency, pass-through agency, grant name, assistance listing numbers, grant amounts, and the grant manager for each grant. This database is now used to verify the completeness and accuracy of the SEFA (beginning FY24). • Formal quarterly monitoring. Each quarter, the City will formally review the grants database with department contacts and grant managers to verify the completeness and accuracy of the database. The City is formalizing this process and plans to include department signoffs evidencing the review process. If any items are missing, the missing component will be identified and added to the database on a timely basis. The City will also utilize this quarterly process to review the grants policy to ensure grant managers are aware of the requirements related to their grants. • The City is in the process of formalizing the SEFA drafting process utilized during the FY24 SEFA preparation, which includes additional mitigating procedures such as reviewing all next FY federal receipts to ensure none of them relate to the SEFA year federal expenditures. Personnel Responsible for Implementation: Marvin Lopez Position of Responsible Personnel: Deputy Administrative Services Director (Fiscal Services) Expected Date of Implementation: June 30, 2025
Condition: During our audit, we noted that expenditures totaling $101,308 for FAL 93.354, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response, were originally incorrectly listed on the schedule of expenditures of federal awards (SEFA) for FAL 93.069, Public Health Emergency Preparedness. Criteria: 2 CFR 200.508(b), Auditee Responsibilities, requires the auditee to prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with § 200.510. Cause and Effect: The cause is that lack of sufficient research in obtaining the appropriate federal assistance listing. The effect is the reporting of expenditures to an incorrect federal assistance listing. Recommendation: We recommend that Yavapai County develop internal controls that ensure the reporting of federal expenditures on the SEFA to the proper federal assistance listing number. Management’s Response: Yavapai County’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.
Finding Reference Number: 2024-006 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF00995-00, F22AF00929-00, F23AF03086-00, F22AF00514-01, F22AF02616-02, F19AF00556-01, F21AF04030-06, F22AF03670-01 Federal Award Year: 2019, 2021, 2022, 2023 U.S. Department of Interior Compliance Requirement: SEFA Reporting Type of Finding: Material Weakness and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR section 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition The New Hampshire Fish and Game Department (the Department) oversees 25 different grants funded under the Fish and Wildlife Cluster (the Program). To assist in the management of the grants, the Department uses QuickBooks as their main system of books and records, rather than the State of New Hampshire’s centralized accounting system, NH First. The Department manually enters expenditure transactional data into QuickBooks and heavily relies on a number of excel tracking sheets to track expenditures, cash draws, and in-kind match earned for each of the 25 grants. During our testwork over the Program, we identified the following: A. For 2 of 25 grants, we identified that there were out of period costs that were included on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024. Specifically we identified the following: a. For 1 of the 2 grants, the Department, included $247,562 of the expenditures that were paid between March 17, 2017 and January 13, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. b. For the other 1 of 2 grants, the Department included $761 of expenditures that were paid on February 10, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. B. For 1 of 25 grants, the Department reported on the SEFA the amount reimbursed through the cash draw process as of June 30, 2024 rather than expenditures paid during that same period. As such, the amount reported on the June 30, 2024 SEFA was understated by $14,830. C. For 1 of 25 grants, we were unable to reconcile the amount reported on the SEFA. For the grant, the Department included $2,637,617 of expenditures on the June 30, 2024 SEFA. As part of our review of the expenditures reported, we were unable to recalculate the amount included by the Department. Based upon the total expenditures incurred during the period ending June 30, 2024, it appeared that the amount that should have been reported was $2,755,548. As such, it appeared that the June 30 2024 was understated by $117,931. D. For 5 of 5 grants that reported subrecipient pass through expenditures, it appeared that the Department reported pass-through expenditures on the SEFA that included both the state and federal share of the costs, resulting in the pass-through amount being overstated by $118,195. Cause The cause of the condition found appears to be related to the heavy reliance on manual spreadsheets and QuickBooks. The manual data entry into QuickBooks and the use of spreadsheets are susceptible to human error. As the Department does not have any internal controls in place to ensure the spreadsheets or QuickBooks reconcile to NH First, if there was an error in the data used by the Department, it would be difficult to detect. In addition, the Department incorrectly included prior period costs on the SEFA as it had been believed that since the costs had not previously been reported but were eligible for reimbursement should be included on the June 30, 2024 SEFA. Effect The effect of the condition found is that the expenditures and subrecipient pass through amounts were not accurately presented on the SEFA. Questioned Costs: Not determinable. Recommendation We recommend that the Department develop written policies and procedures and implement internal controls to ensure all spreadsheets utilized to manage the program reconcile to QuickBooks and that QuickBooks reconciles to NH first on a routine basis. The Department should also implement internal controls to evaluate the amounts reported on the SEFA to ensure that only current period expenditures that are eligible for reimbursement are reported on the SEFA. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, we were unable to obtain documentation that supported a reconciliation between QuickBooks and New Hampshire First was performed. The amounts reported on the SEFA by the Department for this program were not complete and accurate.
Finding Reference Number: 2024-006 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF00995-00, F22AF00929-00, F23AF03086-00, F22AF00514-01, F22AF02616-02, F19AF00556-01, F21AF04030-06, F22AF03670-01 Federal Award Year: 2019, 2021, 2022, 2023 U.S. Department of Interior Compliance Requirement: SEFA Reporting Type of Finding: Material Weakness and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR section 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition The New Hampshire Fish and Game Department (the Department) oversees 25 different grants funded under the Fish and Wildlife Cluster (the Program). To assist in the management of the grants, the Department uses QuickBooks as their main system of books and records, rather than the State of New Hampshire’s centralized accounting system, NH First. The Department manually enters expenditure transactional data into QuickBooks and heavily relies on a number of excel tracking sheets to track expenditures, cash draws, and in-kind match earned for each of the 25 grants. During our testwork over the Program, we identified the following: A. For 2 of 25 grants, we identified that there were out of period costs that were included on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024. Specifically we identified the following: a. For 1 of the 2 grants, the Department, included $247,562 of the expenditures that were paid between March 17, 2017 and January 13, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. b. For the other 1 of 2 grants, the Department included $761 of expenditures that were paid on February 10, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. B. For 1 of 25 grants, the Department reported on the SEFA the amount reimbursed through the cash draw process as of June 30, 2024 rather than expenditures paid during that same period. As such, the amount reported on the June 30, 2024 SEFA was understated by $14,830. C. For 1 of 25 grants, we were unable to reconcile the amount reported on the SEFA. For the grant, the Department included $2,637,617 of expenditures on the June 30, 2024 SEFA. As part of our review of the expenditures reported, we were unable to recalculate the amount included by the Department. Based upon the total expenditures incurred during the period ending June 30, 2024, it appeared that the amount that should have been reported was $2,755,548. As such, it appeared that the June 30 2024 was understated by $117,931. D. For 5 of 5 grants that reported subrecipient pass through expenditures, it appeared that the Department reported pass-through expenditures on the SEFA that included both the state and federal share of the costs, resulting in the pass-through amount being overstated by $118,195. Cause The cause of the condition found appears to be related to the heavy reliance on manual spreadsheets and QuickBooks. The manual data entry into QuickBooks and the use of spreadsheets are susceptible to human error. As the Department does not have any internal controls in place to ensure the spreadsheets or QuickBooks reconcile to NH First, if there was an error in the data used by the Department, it would be difficult to detect. In addition, the Department incorrectly included prior period costs on the SEFA as it had been believed that since the costs had not previously been reported but were eligible for reimbursement should be included on the June 30, 2024 SEFA. Effect The effect of the condition found is that the expenditures and subrecipient pass through amounts were not accurately presented on the SEFA. Questioned Costs: Not determinable. Recommendation We recommend that the Department develop written policies and procedures and implement internal controls to ensure all spreadsheets utilized to manage the program reconcile to QuickBooks and that QuickBooks reconciles to NH first on a routine basis. The Department should also implement internal controls to evaluate the amounts reported on the SEFA to ensure that only current period expenditures that are eligible for reimbursement are reported on the SEFA. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, we were unable to obtain documentation that supported a reconciliation between QuickBooks and New Hampshire First was performed. The amounts reported on the SEFA by the Department for this program were not complete and accurate.
Finding Reference Number: 2024-006 NH Fish and Game Department Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) Federal Award Numbers: F22AF00995-00, F22AF00929-00, F23AF03086-00, F22AF00514-01, F22AF02616-02, F19AF00556-01, F21AF04030-06, F22AF03670-01 Federal Award Year: 2019, 2021, 2022, 2023 U.S. Department of Interior Compliance Requirement: SEFA Reporting Type of Finding: Material Weakness and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR section 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.510(b) states the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. Additionally, per 2 CFR section 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition The New Hampshire Fish and Game Department (the Department) oversees 25 different grants funded under the Fish and Wildlife Cluster (the Program). To assist in the management of the grants, the Department uses QuickBooks as their main system of books and records, rather than the State of New Hampshire’s centralized accounting system, NH First. The Department manually enters expenditure transactional data into QuickBooks and heavily relies on a number of excel tracking sheets to track expenditures, cash draws, and in-kind match earned for each of the 25 grants. During our testwork over the Program, we identified the following: A. For 2 of 25 grants, we identified that there were out of period costs that were included on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2024. Specifically we identified the following: a. For 1 of the 2 grants, the Department, included $247,562 of the expenditures that were paid between March 17, 2017 and January 13, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. b. For the other 1 of 2 grants, the Department included $761 of expenditures that were paid on February 10, 2023 and should not have been reported on the June 30, 2024 SEFA, resulting in an overstatement of expenditures. B. For 1 of 25 grants, the Department reported on the SEFA the amount reimbursed through the cash draw process as of June 30, 2024 rather than expenditures paid during that same period. As such, the amount reported on the June 30, 2024 SEFA was understated by $14,830. C. For 1 of 25 grants, we were unable to reconcile the amount reported on the SEFA. For the grant, the Department included $2,637,617 of expenditures on the June 30, 2024 SEFA. As part of our review of the expenditures reported, we were unable to recalculate the amount included by the Department. Based upon the total expenditures incurred during the period ending June 30, 2024, it appeared that the amount that should have been reported was $2,755,548. As such, it appeared that the June 30 2024 was understated by $117,931. D. For 5 of 5 grants that reported subrecipient pass through expenditures, it appeared that the Department reported pass-through expenditures on the SEFA that included both the state and federal share of the costs, resulting in the pass-through amount being overstated by $118,195. Cause The cause of the condition found appears to be related to the heavy reliance on manual spreadsheets and QuickBooks. The manual data entry into QuickBooks and the use of spreadsheets are susceptible to human error. As the Department does not have any internal controls in place to ensure the spreadsheets or QuickBooks reconcile to NH First, if there was an error in the data used by the Department, it would be difficult to detect. In addition, the Department incorrectly included prior period costs on the SEFA as it had been believed that since the costs had not previously been reported but were eligible for reimbursement should be included on the June 30, 2024 SEFA. Effect The effect of the condition found is that the expenditures and subrecipient pass through amounts were not accurately presented on the SEFA. Questioned Costs: Not determinable. Recommendation We recommend that the Department develop written policies and procedures and implement internal controls to ensure all spreadsheets utilized to manage the program reconcile to QuickBooks and that QuickBooks reconciles to NH first on a routine basis. The Department should also implement internal controls to evaluate the amounts reported on the SEFA to ensure that only current period expenditures that are eligible for reimbursement are reported on the SEFA. View of Responsible Officials: Management partially concurs with this finding. Rejoinder: As documented within the condition found, we were unable to obtain documentation that supported a reconciliation between QuickBooks and New Hampshire First was performed. The amounts reported on the SEFA by the Department for this program were not complete and accurate.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
Assistance Listing, Federal Agency, and Program Name – 20.507, 20.525, 20.526, U.S. Department of Transportation, Federal Transit Cluster Federal Award Identification Number and Year – All Pass through Entity – N/A Finding Type – Material weakness Repeat Finding – Yes Criteria – Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Per 2 CFR 200.71(2), for a SEFA prepared on a cash basis, expenditures are the sum of (i) cash disbursements for direct charges for property and services; (ii) the amount of indirect expense charged; (iii) the value of third-party in-kind contributions applied; and (iv) the amount of cash advance payments and payments made to subrecipients. Condition – The SEFA for the year ended June 30, 2024 was not accurately prepared in accordance with the Authority’s accounting policy for a cash basis SEFA, as it originally included expenditures that were direct charges for property and services, but cash disbursement had not been made as of June 30, 2024. Questioned Costs – None Identification of How Questioned Costs Were Computed – N/A Context – Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated on a cash basis. These revisions related to $4,642,826 of federal expenditures where goods and services had been received as of June 30, 2024 that were originally on the SEFA, but cash disbursement had not been made for these direct charges as of June 30, 2024 and therefore should not have been included in the cash basis SEFA. Cause and Effect – Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively to ensure proper presentation of the SEFA under a cash basis model. This resulted in the Authority's schedule of expenditures of federal awards to be overstated prior to auditor identified revisions. Recommendation – The Authority should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards in the proper period. Views of Responsible Officials and Corrective Action Plan – The corrective actions implemented for capital grants on a cash basis for the SEFA will be expanded to include the operating grants.
2024-010 – Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Various Federal Program Title: Research and Development Cluster Federal Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards which must include the total federal awards expended as determined in accordance with sub section 200-502.2 (2CFR 200.510). Condition: During our testing it was identified that grants were being included in the research and development cluster that were not research and development grants. Questioned Costs: N/A Context: During our testing, it was noted five grants within the research and development cluster, were not considered research and development. Cause: The University’s policies and procedures were not followed or not adequate to ensure a complete and accurate SEFA. Effect: The unadjusted SEFA included grants within the research and development cluster that did not meet the definition of research and development. Repeat Finding: No Recommendation: We recommend the University establish a policy to review grant agreements to ensure that the grants are being classified appropriately on the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.
2024-012 – SEFA Reporting Federal Agency: U.S. Department of Education Federal Program Title: Higher Education – Institutional Aid Federal Assistance Listing Numbers: 84.031 Federal Award Identification Number and Year: P017A170072-19 Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards which must include the total federal awards expended as determined in accordance with sub section 200-502.2 (2CFR 200.510). Condition: During the testing of allowable costs, it was identified that four expenditures were for costs incurred in a prior year. The costs were allowable. Questioned Costs: N/A Context: During the testing of allowable costs, four selections out of a sample of 40 were for expenses incurrent in a prior year but were being recognized on the fiscal 2024 SEFA. Cause: Internal controls ensuring that only federal expenses incurred for the period from July 1, 2023 to June 30, 2024 were not functioning as designed. Effect: The current year SEFA had expenditures from a prior fiscal year. Repeat Finding: No. Recommendation: We recommend that the University review and revise their current procedures in place and provide training to employees within the grant and finance functions related to the grant reconciliation and recording process to ensure expenditures are recorded in the correct period on the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.
2024-010 – Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Various Federal Program Title: Research and Development Cluster Federal Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards which must include the total federal awards expended as determined in accordance with sub section 200-502.2 (2CFR 200.510). Condition: During our testing it was identified that grants were being included in the research and development cluster that were not research and development grants. Questioned Costs: N/A Context: During our testing, it was noted five grants within the research and development cluster, were not considered research and development. Cause: The University’s policies and procedures were not followed or not adequate to ensure a complete and accurate SEFA. Effect: The unadjusted SEFA included grants within the research and development cluster that did not meet the definition of research and development. Repeat Finding: No Recommendation: We recommend the University establish a policy to review grant agreements to ensure that the grants are being classified appropriately on the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.
2024-010 – Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Various Federal Program Title: Research and Development Cluster Federal Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards which must include the total federal awards expended as determined in accordance with sub section 200-502.2 (2CFR 200.510). Condition: During our testing it was identified that grants were being included in the research and development cluster that were not research and development grants. Questioned Costs: N/A Context: During our testing, it was noted five grants within the research and development cluster, were not considered research and development. Cause: The University’s policies and procedures were not followed or not adequate to ensure a complete and accurate SEFA. Effect: The unadjusted SEFA included grants within the research and development cluster that did not meet the definition of research and development. Repeat Finding: No Recommendation: We recommend the University establish a policy to review grant agreements to ensure that the grants are being classified appropriately on the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.
2024-010 – Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Various Federal Program Title: Research and Development Cluster Federal Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards which must include the total federal awards expended as determined in accordance with sub section 200-502.2 (2CFR 200.510). Condition: During our testing it was identified that grants were being included in the research and development cluster that were not research and development grants. Questioned Costs: N/A Context: During our testing, it was noted five grants within the research and development cluster, were not considered research and development. Cause: The University’s policies and procedures were not followed or not adequate to ensure a complete and accurate SEFA. Effect: The unadjusted SEFA included grants within the research and development cluster that did not meet the definition of research and development. Repeat Finding: No Recommendation: We recommend the University establish a policy to review grant agreements to ensure that the grants are being classified appropriately on the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.
2024-010 – Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Various Federal Program Title: Research and Development Cluster Federal Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards which must include the total federal awards expended as determined in accordance with sub section 200-502.2 (2CFR 200.510). Condition: During our testing it was identified that grants were being included in the research and development cluster that were not research and development grants. Questioned Costs: N/A Context: During our testing, it was noted five grants within the research and development cluster, were not considered research and development. Cause: The University’s policies and procedures were not followed or not adequate to ensure a complete and accurate SEFA. Effect: The unadjusted SEFA included grants within the research and development cluster that did not meet the definition of research and development. Repeat Finding: No Recommendation: We recommend the University establish a policy to review grant agreements to ensure that the grants are being classified appropriately on the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.
2024-010 – Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Various Federal Program Title: Research and Development Cluster Federal Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Award Period: 7/1/2023 – 6/30/2024 Type of Finding: Other Matters and Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards which must include the total federal awards expended as determined in accordance with sub section 200-502.2 (2CFR 200.510). Condition: During our testing it was identified that grants were being included in the research and development cluster that were not research and development grants. Questioned Costs: N/A Context: During our testing, it was noted five grants within the research and development cluster, were not considered research and development. Cause: The University’s policies and procedures were not followed or not adequate to ensure a complete and accurate SEFA. Effect: The unadjusted SEFA included grants within the research and development cluster that did not meet the definition of research and development. Repeat Finding: No Recommendation: We recommend the University establish a policy to review grant agreements to ensure that the grants are being classified appropriately on the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.