Finding 2024-004: Schedule of Expenditures of Federal Awards (SEFA) Reporting Program: COVID-19: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Federal agency: U.S. Department of the Treasury Federal Award Year: Year ended June 30, 2024 Type of finding: Material weakness Criteria: 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards (the “schedule”) for the period covered by the auditee’s financial statements, which must include the total Federal awards expended as determined in accordance with section 200.502. Condition: While performing our audit procedures, we noted that CAFB included a $5 million grant from Fairfax County on their SEFA even though CABF is considered a beneficiary related to this grant. Cause: While the Organization recognized they were considered a beneficiary, they believed it was more conservative to include the grant on their SEFA. Effect: The SEFA was overstated by $5 million. Context: An error in the amount of approximately $5 million was identified on the SEFA with total federal expenditures of approximately $46 million. Questioned costs: None Repeat finding: No Recommendation: We recommend that CAFB strengthen its controls over the preparation of the SEFA and consult directly with grantors if there are questions related to whether a grant should be included on the SEFA. Views of responsible officials: CAFB does not agree with the finding as CAFB performed its own research suggesting exclusion of the aforementioned award and included it on the SEFA after consultation with RSM. RSM Response: RSM cannot be part of CAFB’s internal control structure and suggests in the future they consult directly with grantors if there are questions related to whether a grant should be included on the SEFA.
Finding 2024-004: Schedule of Expenditures of Federal Awards (SEFA) Reporting Program: COVID-19: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Federal agency: U.S. Department of the Treasury Federal Award Year: Year ended June 30, 2024 Type of finding: Material weakness Criteria: 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards (the “schedule”) for the period covered by the auditee’s financial statements, which must include the total Federal awards expended as determined in accordance with section 200.502. Condition: While performing our audit procedures, we noted that CAFB included a $5 million grant from Fairfax County on their SEFA even though CABF is considered a beneficiary related to this grant. Cause: While the Organization recognized they were considered a beneficiary, they believed it was more conservative to include the grant on their SEFA. Effect: The SEFA was overstated by $5 million. Context: An error in the amount of approximately $5 million was identified on the SEFA with total federal expenditures of approximately $46 million. Questioned costs: None Repeat finding: No Recommendation: We recommend that CAFB strengthen its controls over the preparation of the SEFA and consult directly with grantors if there are questions related to whether a grant should be included on the SEFA. Views of responsible officials: CAFB does not agree with the finding as CAFB performed its own research suggesting exclusion of the aforementioned award and included it on the SEFA after consultation with RSM. RSM Response: RSM cannot be part of CAFB’s internal control structure and suggests in the future they consult directly with grantors if there are questions related to whether a grant should be included on the SEFA.
Finding 2024-004: Schedule of Expenditures of Federal Awards (SEFA) Reporting Program: COVID-19: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Federal agency: U.S. Department of the Treasury Federal Award Year: Year ended June 30, 2024 Type of finding: Material weakness Criteria: 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards (the “schedule”) for the period covered by the auditee’s financial statements, which must include the total Federal awards expended as determined in accordance with section 200.502. Condition: While performing our audit procedures, we noted that CAFB included a $5 million grant from Fairfax County on their SEFA even though CABF is considered a beneficiary related to this grant. Cause: While the Organization recognized they were considered a beneficiary, they believed it was more conservative to include the grant on their SEFA. Effect: The SEFA was overstated by $5 million. Context: An error in the amount of approximately $5 million was identified on the SEFA with total federal expenditures of approximately $46 million. Questioned costs: None Repeat finding: No Recommendation: We recommend that CAFB strengthen its controls over the preparation of the SEFA and consult directly with grantors if there are questions related to whether a grant should be included on the SEFA. Views of responsible officials: CAFB does not agree with the finding as CAFB performed its own research suggesting exclusion of the aforementioned award and included it on the SEFA after consultation with RSM. RSM Response: RSM cannot be part of CAFB’s internal control structure and suggests in the future they consult directly with grantors if there are questions related to whether a grant should be included on the SEFA.
Finding 2024-004: Schedule of Expenditures of Federal Awards (SEFA) Reporting Program: COVID-19: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Federal agency: U.S. Department of the Treasury Federal Award Year: Year ended June 30, 2024 Type of finding: Material weakness Criteria: 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards (the “schedule”) for the period covered by the auditee’s financial statements, which must include the total Federal awards expended as determined in accordance with section 200.502. Condition: While performing our audit procedures, we noted that CAFB included a $5 million grant from Fairfax County on their SEFA even though CABF is considered a beneficiary related to this grant. Cause: While the Organization recognized they were considered a beneficiary, they believed it was more conservative to include the grant on their SEFA. Effect: The SEFA was overstated by $5 million. Context: An error in the amount of approximately $5 million was identified on the SEFA with total federal expenditures of approximately $46 million. Questioned costs: None Repeat finding: No Recommendation: We recommend that CAFB strengthen its controls over the preparation of the SEFA and consult directly with grantors if there are questions related to whether a grant should be included on the SEFA. Views of responsible officials: CAFB does not agree with the finding as CAFB performed its own research suggesting exclusion of the aforementioned award and included it on the SEFA after consultation with RSM. RSM Response: RSM cannot be part of CAFB’s internal control structure and suggests in the future they consult directly with grantors if there are questions related to whether a grant should be included on the SEFA.
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Emergency Connectivity Fund 32.009 ECF202208394 $141,445 Education Stabilization Fund 84.425 S425U210038 141,445 Federal Agencies: Department of Education and USAC Pass‐Through Agencies: Arizona Department of Education and USAC Type of Finding: Noncompliance, Significant Deficiency Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria Management is responsible for establishing and maintaining internal controls over its accounting records. Further, in accordance with 2 CFR 200.510, the District is responsible for the design and implementation of controls over the preparation of the Schedule of Expenditures of Federal Awards (SEFA) each fiscal year. Additionally, 2 CFR 200.303 requires the District establish and maintain internal control over the federal awards that provides reasonable assurance that the District is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition The District was awarded several new Federal grants in response to the COVID‐19 pandemic, which made proper preparation of the SEFA challenging and the District failed to include the new grant on the fiscal year 2022 SEFA. The District also submitted the same expenditures for reimbursement for two federal programs. Cause The District did not account for the Emergency Connectivity Fund (ECF) properly as the program was unique and not part of the District’s normal federal program operations. It was not known that the program was subject to Single Audit. In addition, there was a lack of financial oversight of the ECF grant application submitted by the Technology Department during fiscal year 2022. Effect The District received reimbursements for two federal grants, one for the Education Stabilization Fund in fiscal year 2022 and the other for the ECF grant in fiscal year 2024, for expenditures totaling $141,445. In addition, the fiscal year 2022 SEFA was incorrect as the ECF expenditures were not included on the SEFA; however, it was determined the error did not have an effect on the selection of major federal programs. Context During fiscal year 2021‐22, the District applied for and was approved for funding under the Universal Service Company (USAC)'s Emergency Connectivity Fund (ECF). The District, in conjunction with its consultant, submitted expenditures from two purchase orders to USAC's ECF for purchases made in fiscal year 2021‐22, one of which was paid for and previously reimbursed under the Education Stabilization Fund. The District received the USAC ECF reimbursement in fiscal year 2023‐24. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure all federal programs are properly reviewed prior to submitting any applications or expenditures for reimbursements. The expenditures should be included in the SEFA for the fiscal year in which the expenditures occurred. In addition, the District should strengthen controls over the accounting records to ensure reimbursements are not submitted for multiple programs. Views of Responsible Officials See Corrective Action Plan.
Finding Number: 2024‐001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Emergency Connectivity Fund 32.009 ECF202208394 $141,445 Education Stabilization Fund 84.425 S425U210038 141,445 Federal Agencies: Department of Education and USAC Pass‐Through Agencies: Arizona Department of Education and USAC Type of Finding: Noncompliance, Significant Deficiency Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria Management is responsible for establishing and maintaining internal controls over its accounting records. Further, in accordance with 2 CFR 200.510, the District is responsible for the design and implementation of controls over the preparation of the Schedule of Expenditures of Federal Awards (SEFA) each fiscal year. Additionally, 2 CFR 200.303 requires the District establish and maintain internal control over the federal awards that provides reasonable assurance that the District is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition The District was awarded several new Federal grants in response to the COVID‐19 pandemic, which made proper preparation of the SEFA challenging and the District failed to include the new grant on the fiscal year 2022 SEFA. The District also submitted the same expenditures for reimbursement for two federal programs. Cause The District did not account for the Emergency Connectivity Fund (ECF) properly as the program was unique and not part of the District’s normal federal program operations. It was not known that the program was subject to Single Audit. In addition, there was a lack of financial oversight of the ECF grant application submitted by the Technology Department during fiscal year 2022. Effect The District received reimbursements for two federal grants, one for the Education Stabilization Fund in fiscal year 2022 and the other for the ECF grant in fiscal year 2024, for expenditures totaling $141,445. In addition, the fiscal year 2022 SEFA was incorrect as the ECF expenditures were not included on the SEFA; however, it was determined the error did not have an effect on the selection of major federal programs. Context During fiscal year 2021‐22, the District applied for and was approved for funding under the Universal Service Company (USAC)'s Emergency Connectivity Fund (ECF). The District, in conjunction with its consultant, submitted expenditures from two purchase orders to USAC's ECF for purchases made in fiscal year 2021‐22, one of which was paid for and previously reimbursed under the Education Stabilization Fund. The District received the USAC ECF reimbursement in fiscal year 2023‐24. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should ensure all federal programs are properly reviewed prior to submitting any applications or expenditures for reimbursements. The expenditures should be included in the SEFA for the fiscal year in which the expenditures occurred. In addition, the District should strengthen controls over the accounting records to ensure reimbursements are not submitted for multiple programs. Views of Responsible Officials See Corrective Action Plan.
Condition: As a result of our audit procedures and review of the SEFA, we proposed multiple adjustments to the SEFA, which resulted in a material change in total expenditures of federal awards. Criteria: 2 CFR Part 200 Cause: Oversight by management, and there was not an independent review of the SEFA prepared by someone other than the preparer. Effect: Audit adjustments were required for the SEFA to be materially correct in accordance with 2 CFR Part 200.510(b). Recommendation: We recommend that prior to sending the SEFA to the auditors, management performed a detailed review of the SEFA, general ledger, and monthly invoicing spreadsheets for each federal program included on the SEFA, to ensure the reports are consistent and the SEFA is complete and accurate. If possible, this review should be completed by an individual who did not prepare the SEFA and who has the appropriate skills, knowledge and experience of accounting and reporting in the nonprofit industry. View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Federal Program reported incorrectly on the Schedule of Expenditures of Federal Awards (“SEFA”) and errors noted in written off loans Federal Program: Assistance Listing Number (“ALN”) 11.307 Economic Adjustment Assistance Name of Federal Agency: U.S. Department of Commerce Award Identification Number and Year: 04-79-07547 and Year 2020 Name of pass-through entity: N/A COVID Identification: Yes Amount of Questioned Costs: $1,571,578 Criteria: 2CFR 200.510 states the requirements for SEFA reporting. The Louisville Metropolitan Business Development Corporation Policy and Procedures Handbook provides the order of priority for loan proceeds to be applied. Condition: The federal expenditure amount for ALN 11.307 was reported incorrectly on the draft SEFA provided by Louisville Metro. Also, the information in the loan system was incorrect for two written off loans. Effect: SEFA was mis-stated for ALN 11.307. Semi-annual report had incorrect information on chart. Cause: Lack of communication between Metro grants personnel and Metro OMB grants division. Also error in loan system. Questioned Costs: Total questioned costs is $1,571,578 (SEFA error of $1,570,592, loan error of $864, and loan error of $122). Context: Total federal expenditures on the SEFA required an adjustment of $1,570,592. The total written off loan amounts for FY 2024 were $343,439. Recommendation: We recommend communication be improved and management periodically reconcile the loan system to detect errors. Management’s response: Management agrees with the finding and will develop a plan to insure such differences do not reoccur in the future.
Finding 2024-002: Reporting - Schedule of Expenditures of Federal Awards Grantor: National Institute of Health Program: Research and Development Assistance Listing #: 93.352 Title: A Washington University Gnotobiotic Research, Education and Transgenic Center for modeling genetic and environmental effectors of disease pathogenesis Award Year: 9/20/2019-5/31/2024 Award #: 1C06OD02830601 Criteria: 2 CFR 200.510 which requires the auditee to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements that includes the total federal awards expenses. Condition: Expenditures totaling $2,013,944 related to a construction grant were incurred in prior fiscal years but recorded in the SEFA during the current fiscal year. Cause: The management of the construction grant activity resided in a department other than Sponsored Projects Accounting. Therefore, the grant was excluded from the normal processes for capturing activity in the SEFA. Effect: The current year SEFA is overstated by amounts that should have been recorded in the SEFA in prior years. Questioned Costs: There are no questioned costs as amounts sampled from the expenditures recorded in the current year SEFA were deemed allowable. Recommendation: Management should enhance its coordination and review procedures for special purpose grants managed outside of Sponsored Projects Accounting to ensure that amounts associated with such grants are completely and accurately reported in the SEFA. Management's View and Corrective Action Plan: Please refer to management's views and corrective action plan.
Schedule of Expenditures of Federal Awards (SEFA) Preparation Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition: The SEFA provided for the audit contained errors including the exclusion of federally funded grants, spending reported under incorrect assistance listing numbers, and reporting private contributions as federal grants. The errors were identified and corrected during the audit. Effect: Errors in the preparation of the SEFA schedule could lead funding agencies to misinterpret the level of spending for a particular program for the period under audit. Additionally, the identification of major federal award programs chosen for specific compliance testing could be erroneous, depending on the misstatement in the total amount of federal expenditures for the year. Cause: The SEFA report was not reviewed before it was provided for the audit. Repeat: No Auditor's Recommendations: The SEFA report and supporting documents should be reviewed by an individual that is knowledgeable about Community Council of Idaho, Inc.'s programs to help ensure accurate reporting of federal expenditures in the SEFA report. View of Responsible Officials: Community Council of Idaho, Inc. agrees with the audit finding and has written a corrective action plan. Audit finding 2024-001 represenets a significant deficiency in internal control over compliance related to reporting for Community Council of Idaho, Inc.'s major federal programs. Federal Program Information: Funding agency: U.S. Department of Human Services Title: Head Start Cluster AL number: 93.600 Award number and period: 90CM09845-04 05/01/2023 - 04/30/2024 90CM09845-05 05/01/2024 - 04/30/2025 90WM000028 09/01/2023 - 08/31/2025 Funding agency: U.S. Department of Human Services Title: Health Center Program Cluster AL number: 93.224 Award number and period: H80CS04201-19 05/01/2023 - 04/30/2024 H80CS04201-20 05/01/2024 - 04/30/2025 23H8GCS48233 12/01/2022 - 12/31/2023 Questioned Costs: None How the questioned costs were computed: N/A
Schedule of Expenditures of Federal Awards (SEFA) Preparation Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition: The SEFA provided for the audit contained errors including the exclusion of federally funded grants, spending reported under incorrect assistance listing numbers, and reporting private contributions as federal grants. The errors were identified and corrected during the audit. Effect: Errors in the preparation of the SEFA schedule could lead funding agencies to misinterpret the level of spending for a particular program for the period under audit. Additionally, the identification of major federal award programs chosen for specific compliance testing could be erroneous, depending on the misstatement in the total amount of federal expenditures for the year. Cause: The SEFA report was not reviewed before it was provided for the audit. Repeat: No Auditor's Recommendations: The SEFA report and supporting documents should be reviewed by an individual that is knowledgeable about Community Council of Idaho, Inc.'s programs to help ensure accurate reporting of federal expenditures in the SEFA report. View of Responsible Officials: Community Council of Idaho, Inc. agrees with the audit finding and has written a corrective action plan. Audit finding 2024-001 represenets a significant deficiency in internal control over compliance related to reporting for Community Council of Idaho, Inc.'s major federal programs. Federal Program Information: Funding agency: U.S. Department of Human Services Title: Head Start Cluster AL number: 93.600 Award number and period: 90CM09845-04 05/01/2023 - 04/30/2024 90CM09845-05 05/01/2024 - 04/30/2025 90WM000028 09/01/2023 - 08/31/2025 Funding agency: U.S. Department of Human Services Title: Health Center Program Cluster AL number: 93.224 Award number and period: H80CS04201-19 05/01/2023 - 04/30/2024 H80CS04201-20 05/01/2024 - 04/30/2025 23H8GCS48233 12/01/2022 - 12/31/2023 Questioned Costs: None How the questioned costs were computed: N/A
Schedule of Expenditures of Federal Awards (SEFA) Preparation Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition: The SEFA provided for the audit contained errors including the exclusion of federally funded grants, spending reported under incorrect assistance listing numbers, and reporting private contributions as federal grants. The errors were identified and corrected during the audit. Effect: Errors in the preparation of the SEFA schedule could lead funding agencies to misinterpret the level of spending for a particular program for the period under audit. Additionally, the identification of major federal award programs chosen for specific compliance testing could be erroneous, depending on the misstatement in the total amount of federal expenditures for the year. Cause: The SEFA report was not reviewed before it was provided for the audit. Repeat: No Auditor's Recommendations: The SEFA report and supporting documents should be reviewed by an individual that is knowledgeable about Community Council of Idaho, Inc.'s programs to help ensure accurate reporting of federal expenditures in the SEFA report. View of Responsible Officials: Community Council of Idaho, Inc. agrees with the audit finding and has written a corrective action plan. Audit finding 2024-001 represenets a significant deficiency in internal control over compliance related to reporting for Community Council of Idaho, Inc.'s major federal programs. Federal Program Information: Funding agency: U.S. Department of Human Services Title: Head Start Cluster AL number: 93.600 Award number and period: 90CM09845-04 05/01/2023 - 04/30/2024 90CM09845-05 05/01/2024 - 04/30/2025 90WM000028 09/01/2023 - 08/31/2025 Funding agency: U.S. Department of Human Services Title: Health Center Program Cluster AL number: 93.224 Award number and period: H80CS04201-19 05/01/2023 - 04/30/2024 H80CS04201-20 05/01/2024 - 04/30/2025 23H8GCS48233 12/01/2022 - 12/31/2023 Questioned Costs: None How the questioned costs were computed: N/A
Finding 2024-004 - Preparation of Schedule of Expenditures of Federal Awards Federal Agency: United States Department of Agriculture Federal Program Name: Special Supplemental Nutrition Program for Women Assistance Listing Number: 10.557 Pass-Through Agency: Pennsylvania Department of Health Pass-Through Grantor’s Number: SAP 4100093389 Award Period: 10/1/2022 – 9/30/2023, 10/1/2023 – 9/30/2024 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.510(a) states the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements. The schedule must include the total federal awards expended as determined in accordance with 2 CFR 200.502. Condition and Context: The expenditures included on the schedule of expenditures of Federal awards (Schedule) initially prepared by the Organization were understated and required material adjustment. Questioned Costs: $-0- Cause: The Organization did not have adequate policies and procedures in place for accurately determining the amount of the assistance expended during the fiscal year. Effect: The Schedule prepared by the Organization did not accurately present the federal awards expended during the fiscal year. Repeat finding: No Recommendation: We recommend the following: • The Organization should establish policies and procedures to understand and ensure compliance with the Organization’s contractual obligations. • The Organization should create and implement procedures to timely and accurately determine the source of funding received through various county contracts. • The Organization should implement review procedures to ensure the Schedule is complete, accurate and prepared in accordance with the requirements set forth within 2 CFR 200.510. View of Responsible Officials: Management agrees with the finding and will take the necessary corrective actions.
Information on the Federal Program: Federal Program: HIV - Related Training and Technical Assistance - Aids Education and Training Centers Assistance Listing: 93.145 Federal Agency: U.S. Department of Health and Human Services – Health Resources and Services Administration (HRSA) Grant Award Number: 6 U1OHA30535-08-01 Award Periods: July 1, 2023 through June 30, 2024 Pass-Through Agency: Columbia University Grant Award Number: U1SHA46532 Award Periods: September 1, 2023 through August 31, 2024 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 2 CFR 200.303 requires that a non-Federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total Federal awards expended as determined in accordance with §200.502, Basis for determining Federal awards expended.” Condition: The Schedule of Expenditures of Federal Awards (the Schedule) did not accurately classify the HIV-Related Training and Technical Assistance – Aids Education and Training Centers program. The final Schedule was corrected for the misclassification. Cause: The internal control over the SEFA reporting process was not operating effectively to appropriately classify grant awards on the SEFA. Effect or Potential Effect: Management included the HIV-Related Training and Technical Assistance grant (Assistance Listing 93.145) in the amount of $5,642,581 in the Research & Development (R&D) cluster. Questioned Costs: None. Context: Total R&D Cluster expenses included on the draft Schedule was $592,460,606 for the year ended June 30, 2024. Total R&D expenses included on the final Schedule were $586,818,025 for the year ended June 30, 2024. Total expenditures on the SEFA did not change. Identification as a Repeat Finding, if Applicable This is not a repeat finding. Recommendation: We recommend that management implement more robust controls to ensure accurate reporting of federal awards on the SEFA. Management’s Response: Department of Health and Human Services – Health Resources and Services Administration (HRSA) updated the award template utilizing a new federal format. Modification of this federal award template has allowed HRSA to indicate/flag (item 18 in the Notice of Grant Award - R&D “no”) whether the federal program is R&D in a manner not previously recorded or visible. This indicator flag now indicates AETC is non-R&D, therefore, we have reflected it appropriately in the FY24 SEFA. We will strengthen our controls for monitoring the cluster to ensure appropriate classification paying attention to any indications in the Notice of Grant Award.
Information on the Federal Program: Federal Program: HIV - Related Training and Technical Assistance - Aids Education and Training Centers Assistance Listing: 93.145 Federal Agency: U.S. Department of Health and Human Services – Health Resources and Services Administration (HRSA) Grant Award Number: 6 U1OHA30535-08-01 Award Periods: July 1, 2023 through June 30, 2024 Pass-Through Agency: Columbia University Grant Award Number: U1SHA46532 Award Periods: September 1, 2023 through August 31, 2024 Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): 2 CFR 200.303 requires that a non-Federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total Federal awards expended as determined in accordance with §200.502, Basis for determining Federal awards expended.” Condition: The Schedule of Expenditures of Federal Awards (the Schedule) did not accurately classify the HIV-Related Training and Technical Assistance – Aids Education and Training Centers program. The final Schedule was corrected for the misclassification. Cause: The internal control over the SEFA reporting process was not operating effectively to appropriately classify grant awards on the SEFA. Effect or Potential Effect: Management included the HIV-Related Training and Technical Assistance grant (Assistance Listing 93.145) in the amount of $5,642,581 in the Research & Development (R&D) cluster. Questioned Costs: None. Context: Total R&D Cluster expenses included on the draft Schedule was $592,460,606 for the year ended June 30, 2024. Total R&D expenses included on the final Schedule were $586,818,025 for the year ended June 30, 2024. Total expenditures on the SEFA did not change. Identification as a Repeat Finding, if Applicable This is not a repeat finding. Recommendation: We recommend that management implement more robust controls to ensure accurate reporting of federal awards on the SEFA. Management’s Response: Department of Health and Human Services – Health Resources and Services Administration (HRSA) updated the award template utilizing a new federal format. Modification of this federal award template has allowed HRSA to indicate/flag (item 18 in the Notice of Grant Award - R&D “no”) whether the federal program is R&D in a manner not previously recorded or visible. This indicator flag now indicates AETC is non-R&D, therefore, we have reflected it appropriately in the FY24 SEFA. We will strengthen our controls for monitoring the cluster to ensure appropriate classification paying attention to any indications in the Notice of Grant Award.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Program: Various, including AL 10.542 – COVID-19 Pandemic EBT Food Benefits; AL 10.551 – Supplemental Nutrition Assistance Program; AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Reporting Grant Number & Year: Various, including 2401NERCMA, FFY 2024 Federal Grantor Agency: Various, including U.S. Department of Agriculture and U.S. Department of Health and Human Services Criteria: A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures of Federal Awards (SEFA) is presented properly. Title 45 CFR § 75.510(b) (October 1, 2023) and Title 2 CFR § 200.510(b) (January 1, 2024) state, in part, the following: 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 . . . . At a minimum, the schedule must: * * * * (3) Provide total Federal awards expended for each individual Federal program . . . . (4) Include the total amount provided to subrecipients from each Federal program. Neb. Rev. Stat. § 81-1111(1) (Reissue 2014) states, in part, the following: Subject to the supervision of the Director of Administrative Services, the Accounting Administrator shall have the authority to prescribe the system of accounts and accounting to be maintained by the state and its departments and agencies, develop necessary accounting policies and procedures, coordinate and approve all proposed financial systems, and manage all accounting matters of the state’s central system. EnterpriseOne is the official accounting system of the State. Condition: Several programs did not have expenditures or the amount provided to subrecipients reported accurately on the SEFA. We notified Administrative Services of the errors, and the SEFA was subsequently adjusted. A similar finding was noted in the prior audit. Repeat Finding: 2023-022 Questioned Costs: None Statistical Sample: No Context: Administrative Services is responsible for managing the accounting matters of the State and certifies the data collection form for the Statewide Single Audit. Administrative Services compiles the SEFA from information provided by the individual agencies and submits it to the auditor. During our review, we noted the following: The Department of Health and Human Services (DHHS) did not accurately report expenditures for several programs, including overreporting AL 93.566 by $1,154,638. DHHS also reported $20,605,059 under AL 10.551 that should have been under AL 10.542. If the latter adjustment had not been made, this would have resulted in a major program not being reported on the SEFA. Sixteen programs for various State agencies needed correction. The total expenditures and amounts provided to subrecipients, as both originally reported and per the final SEFA, were as follows: See Schedule of Findings and Questioned Costs for chart/table. Cause: Administrative Services lacked adequate procedures for ensuring the accuracy of amounts not obtained directly from the accounting system. Administrative Services established a specific account code for aid to subrecipients, but not all agencies utilized this account code. Effect: Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or programs not audited that should be. Recommendation: We recommend Administrative Services improve procedures to ensure the SEFA is complete and accurate. Management Response: We will continue agency training, review of chart of accounts setup, review of object account usage, and working with State employees to help ensure the SEFA is accurate and complete.
Program: Various, including AL 10.542 – COVID-19 Pandemic EBT Food Benefits; AL 10.551 – Supplemental Nutrition Assistance Program; AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Reporting Grant Number & Year: Various, including 2401NERCMA, FFY 2024 Federal Grantor Agency: Various, including U.S. Department of Agriculture and U.S. Department of Health and Human Services Criteria: A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures of Federal Awards (SEFA) is presented properly. Title 45 CFR § 75.510(b) (October 1, 2023) and Title 2 CFR § 200.510(b) (January 1, 2024) state, in part, the following: 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 . . . . At a minimum, the schedule must: * * * * (3) Provide total Federal awards expended for each individual Federal program . . . . (4) Include the total amount provided to subrecipients from each Federal program. Neb. Rev. Stat. § 81-1111(1) (Reissue 2014) states, in part, the following: Subject to the supervision of the Director of Administrative Services, the Accounting Administrator shall have the authority to prescribe the system of accounts and accounting to be maintained by the state and its departments and agencies, develop necessary accounting policies and procedures, coordinate and approve all proposed financial systems, and manage all accounting matters of the state’s central system. EnterpriseOne is the official accounting system of the State. Condition: Several programs did not have expenditures or the amount provided to subrecipients reported accurately on the SEFA. We notified Administrative Services of the errors, and the SEFA was subsequently adjusted. A similar finding was noted in the prior audit. Repeat Finding: 2023-022 Questioned Costs: None Statistical Sample: No Context: Administrative Services is responsible for managing the accounting matters of the State and certifies the data collection form for the Statewide Single Audit. Administrative Services compiles the SEFA from information provided by the individual agencies and submits it to the auditor. During our review, we noted the following: The Department of Health and Human Services (DHHS) did not accurately report expenditures for several programs, including overreporting AL 93.566 by $1,154,638. DHHS also reported $20,605,059 under AL 10.551 that should have been under AL 10.542. If the latter adjustment had not been made, this would have resulted in a major program not being reported on the SEFA. Sixteen programs for various State agencies needed correction. The total expenditures and amounts provided to subrecipients, as both originally reported and per the final SEFA, were as follows: See Schedule of Findings and Questioned Costs for chart/table. Cause: Administrative Services lacked adequate procedures for ensuring the accuracy of amounts not obtained directly from the accounting system. Administrative Services established a specific account code for aid to subrecipients, but not all agencies utilized this account code. Effect: Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or programs not audited that should be. Recommendation: We recommend Administrative Services improve procedures to ensure the SEFA is complete and accurate. Management Response: We will continue agency training, review of chart of accounts setup, review of object account usage, and working with State employees to help ensure the SEFA is accurate and complete.
Program: Various, including AL 10.542 – COVID-19 Pandemic EBT Food Benefits; AL 10.551 – Supplemental Nutrition Assistance Program; AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Reporting Grant Number & Year: Various, including 2401NERCMA, FFY 2024 Federal Grantor Agency: Various, including U.S. Department of Agriculture and U.S. Department of Health and Human Services Criteria: A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures of Federal Awards (SEFA) is presented properly. Title 45 CFR § 75.510(b) (October 1, 2023) and Title 2 CFR § 200.510(b) (January 1, 2024) state, in part, the following: 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 . . . . At a minimum, the schedule must: * * * * (3) Provide total Federal awards expended for each individual Federal program . . . . (4) Include the total amount provided to subrecipients from each Federal program. Neb. Rev. Stat. § 81-1111(1) (Reissue 2014) states, in part, the following: Subject to the supervision of the Director of Administrative Services, the Accounting Administrator shall have the authority to prescribe the system of accounts and accounting to be maintained by the state and its departments and agencies, develop necessary accounting policies and procedures, coordinate and approve all proposed financial systems, and manage all accounting matters of the state’s central system. EnterpriseOne is the official accounting system of the State. Condition: Several programs did not have expenditures or the amount provided to subrecipients reported accurately on the SEFA. We notified Administrative Services of the errors, and the SEFA was subsequently adjusted. A similar finding was noted in the prior audit. Repeat Finding: 2023-022 Questioned Costs: None Statistical Sample: No Context: Administrative Services is responsible for managing the accounting matters of the State and certifies the data collection form for the Statewide Single Audit. Administrative Services compiles the SEFA from information provided by the individual agencies and submits it to the auditor. During our review, we noted the following: The Department of Health and Human Services (DHHS) did not accurately report expenditures for several programs, including overreporting AL 93.566 by $1,154,638. DHHS also reported $20,605,059 under AL 10.551 that should have been under AL 10.542. If the latter adjustment had not been made, this would have resulted in a major program not being reported on the SEFA. Sixteen programs for various State agencies needed correction. The total expenditures and amounts provided to subrecipients, as both originally reported and per the final SEFA, were as follows: See Schedule of Findings and Questioned Costs for chart/table. Cause: Administrative Services lacked adequate procedures for ensuring the accuracy of amounts not obtained directly from the accounting system. Administrative Services established a specific account code for aid to subrecipients, but not all agencies utilized this account code. Effect: Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or programs not audited that should be. Recommendation: We recommend Administrative Services improve procedures to ensure the SEFA is complete and accurate. Management Response: We will continue agency training, review of chart of accounts setup, review of object account usage, and working with State employees to help ensure the SEFA is accurate and complete.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
Finding 2024-002 – Schedule of Expenditures of Federal Awards – Significant Deficiency in Internal Control Over Compliance and Noncompliance Federal program information: Funding agency: All Title: All Assistance Listing Number: All Award year and number: All Criteria: The Uniform Guidance 2 CFR 200.510(b) requires the auditee to prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 500.502. Condition/Context: Phoenix Indian Center’s schedule of expenditures of federal awards did not include Federal awards expended in accordance with 2 CFR 500.502. Questioned Costs: None. Cause and Effect: Phoenix Indian Center experienced significant turnover in key positions that generally ensure accounting records and financial statements were reconciled timely. As a result, the prepared schedule did not include federal awards expended in accordance with 2 CFR 500.502. Auditors’ Recommendations: To ensure compliance with the Uniform Guidance, Phoenix Indian Center should prepare accurate, complete and timely financial statements and ensure the prepared schedule of expenditures of federal awards is prepared in accordance with 2 CFR 200.510(b). Management’s Response: Agreed, management began even before completion of prior year’s audit to address issues of control and system weaknesses. The process just beginning did not address all things quickly. However, the following correction plan is in effect and systems are now in place.
Condition: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Cause: The inaccurate reporting of these federal awards appears to be due to lack of communication and oversight in data collection. Effect: SEFA was inaccurate Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.