Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Finding 2022-006 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes Condition: During our fiscal year 2022 audit, we observed that the detail expenditure information in the accounting software differed from the expenditures reported by various City departments. We were not able to determine if the Federal expenditures and subrecipient payments for all grants from the City was complete. Additionally, there were unreconciled amounts passed through to subrecipients. Finance is responsible for preparing the schedule of expenditures of Federal awards based upon grant information obtained from the financial accounting records and other information provided by each department or agency. Per discussion with Finance, we became aware that grant information and documents are not maintained by Finance. Grant documents are necessary for Finance to obtain required information for the Schedule, such as AL titles and numbers, pass through identification information and subrecipient information. Criteria: In accordance with 2 CFR 200.303, Internal controls: The 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. In accordance with 2 CFR 200.508, Auditee responsibilities: The auditee must: (b) Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with ?200.510 Financial statements. In accordance with 2 CFR 200.510, Financial statements: (b) Schedule of expenditures of Federal awards: the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 Basis for determining Federal awards expended. While not required, the auditee may choose to provide information requested by Federal awarding agencies and pass-through entities to make the schedule easier to use. For example, when a Federal program has multiple Federal award years, the auditee may list the amount of Federal awards expended for each Federal award year separately. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the AL number or other identifying number when the AL information is not available. For a cluster of programs, also provide the total for the cluster. Finding 2022-006 (continued) Criteria: (continued) (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in ? 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule; and (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the non-Federal entity elected to use the 10% de minimis cost rate as covered in ?200.414 Indirect (F&A) costs. Cause: The City does not maintain a centralized grant accounting function or standardized policies and procedures, including requirements to periodically submit and reconcile expenditures; instead, each department maintains its own grant information. The lack of submission of grant documents and accurate information by the various agencies and departments to Finance weakens internal controls over grant reporting and hinders the ability of Finance to accurately prepare the Schedule. Controls have not been established by the City to ensure complete and accurate reporting for the Schedule for the 2022 fiscal year. Effect: The determination of which major Federal programs will be audited are affected by the accuracy of the Schedule at the time of audit. Without proper internal controls over financial reporting, inaccurate reporting of the City?s financial information could occur. As a result, individual program reports throughout the year could have inaccurate information. Questioned Costs: Unknown. Recommendation: We recommend that Finance establish policies and procedures to ensure that the Federal funds are properly identified and reported accurately in the Schedule in accordance with Uniform Guidance requirements. We also recommend that individuals responsible for administering Federal assistance programs with the City receive training in grant administration. Internal controls over financial reporting should be designed to prevent, detect or correct errors in a timely manner. Without adequate controls, the City cannot provide reasonable assurance that the Schedule is fairly presented. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in Part V of this report. Auditor?s Conclusion: Finding remains as stated.
Assistance Listing Number, Federal Agency, and Program Name - 10.558 U.S. Department of Agriculture Child and Adult Care Food Program - CCAP Classroom 14.267 U.S. Department of Housing and Urban Development Transitional Living Program Federal Award Identification Number and Year- 10.558: 0010284 2020-2021 14.267: H0COC20021, H1COC21016 2020-2021 Pass-through Entity- 10.558: N/A - Direct 14.267: State of Colorado Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR ? 200.510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ? 200.502 Condition ? The Organization excluded certain amounts from prior years' schedule of expenditures of federal awards. The amounts excluded for the prior two years are as follows: See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs - None Identification of How Questioned Costs Were Computed -N/A Context - The Organization mistakenly misclassified these grants as non-federal awards in prior years as follows. The exclusion of the activity would not have affected major program determination in those years. Total Federal Expenditures: See Schedule of Findings and Questioned Costs for chart/table. Cause and Effect - In prior years, the Organization did not have proper controls in place over the Schedule of Expenditures of Federal Awards to prevent a material error from occurring. The prior year Schedule of Expenditures of Federal Awards were understated by the amounts in the Error column of the Context section above. Recommendation - The Organization should improve controls by implementing a review of grants and a determination of whether they are federal or nonfederal by program managers. Views of Responsible Officials and Corrective Action Plan - During the year, the Organization created and hired for a new position, Director of Financial Analysis and Internal Controls/Contracts to provide additional oversight over the Schedule of Expenditures of Federal Awards. The control is now in place and working as of the issuance of the audit.
Assistance Listing Number, Federal Agency, and Program Name - 10.558 U.S. Department of Agriculture Child and Adult Care Food Program - CCAP Classroom 14.267 U.S. Department of Housing and Urban Development Transitional Living Program Federal Award Identification Number and Year- 10.558: 0010284 2020-2021 14.267: H0COC20021, H1COC21016 2020-2021 Pass-through Entity- 10.558: N/A - Direct 14.267: State of Colorado Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR ? 200.510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ? 200.502 Condition ? The Organization excluded certain amounts from prior years' schedule of expenditures of federal awards. The amounts excluded for the prior two years are as follows: See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs - None Identification of How Questioned Costs Were Computed -N/A Context - The Organization mistakenly misclassified these grants as non-federal awards in prior years as follows. The exclusion of the activity would not have affected major program determination in those years. Total Federal Expenditures: See Schedule of Findings and Questioned Costs for chart/table. Cause and Effect - In prior years, the Organization did not have proper controls in place over the Schedule of Expenditures of Federal Awards to prevent a material error from occurring. The prior year Schedule of Expenditures of Federal Awards were understated by the amounts in the Error column of the Context section above. Recommendation - The Organization should improve controls by implementing a review of grants and a determination of whether they are federal or nonfederal by program managers. Views of Responsible Officials and Corrective Action Plan - During the year, the Organization created and hired for a new position, Director of Financial Analysis and Internal Controls/Contracts to provide additional oversight over the Schedule of Expenditures of Federal Awards. The control is now in place and working as of the issuance of the audit.
Assistance Listing Number, Federal Agency, and Program Name - 10.558 U.S. Department of Agriculture Child and Adult Care Food Program - CCAP Classroom 14.267 U.S. Department of Housing and Urban Development Transitional Living Program Federal Award Identification Number and Year- 10.558: 0010284 2020-2021 14.267: H0COC20021, H1COC21016 2020-2021 Pass-through Entity- 10.558: N/A - Direct 14.267: State of Colorado Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR ? 200.510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ? 200.502 Condition ? The Organization excluded certain amounts from prior years' schedule of expenditures of federal awards. The amounts excluded for the prior two years are as follows: See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs - None Identification of How Questioned Costs Were Computed -N/A Context - The Organization mistakenly misclassified these grants as non-federal awards in prior years as follows. The exclusion of the activity would not have affected major program determination in those years. Total Federal Expenditures: See Schedule of Findings and Questioned Costs for chart/table. Cause and Effect - In prior years, the Organization did not have proper controls in place over the Schedule of Expenditures of Federal Awards to prevent a material error from occurring. The prior year Schedule of Expenditures of Federal Awards were understated by the amounts in the Error column of the Context section above. Recommendation - The Organization should improve controls by implementing a review of grants and a determination of whether they are federal or nonfederal by program managers. Views of Responsible Officials and Corrective Action Plan - During the year, the Organization created and hired for a new position, Director of Financial Analysis and Internal Controls/Contracts to provide additional oversight over the Schedule of Expenditures of Federal Awards. The control is now in place and working as of the issuance of the audit.
Assistance Listing Number, Federal Agency, and Program Name - 10.558 U.S. Department of Agriculture Child and Adult Care Food Program - CCAP Classroom 14.267 U.S. Department of Housing and Urban Development Transitional Living Program Federal Award Identification Number and Year- 10.558: 0010284 2020-2021 14.267: H0COC20021, H1COC21016 2020-2021 Pass-through Entity- 10.558: N/A - Direct 14.267: State of Colorado Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR ? 200.510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ? 200.502 Condition ? The Organization excluded certain amounts from prior years' schedule of expenditures of federal awards. The amounts excluded for the prior two years are as follows: See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs - None Identification of How Questioned Costs Were Computed -N/A Context - The Organization mistakenly misclassified these grants as non-federal awards in prior years as follows. The exclusion of the activity would not have affected major program determination in those years. Total Federal Expenditures: See Schedule of Findings and Questioned Costs for chart/table. Cause and Effect - In prior years, the Organization did not have proper controls in place over the Schedule of Expenditures of Federal Awards to prevent a material error from occurring. The prior year Schedule of Expenditures of Federal Awards were understated by the amounts in the Error column of the Context section above. Recommendation - The Organization should improve controls by implementing a review of grants and a determination of whether they are federal or nonfederal by program managers. Views of Responsible Officials and Corrective Action Plan - During the year, the Organization created and hired for a new position, Director of Financial Analysis and Internal Controls/Contracts to provide additional oversight over the Schedule of Expenditures of Federal Awards. The control is now in place and working as of the issuance of the audit.
Assistance Listing Number, Federal Agency, and Program Name - 10.558 U.S. Department of Agriculture Child and Adult Care Food Program - CCAP Classroom 14.267 U.S. Department of Housing and Urban Development Transitional Living Program Federal Award Identification Number and Year- 10.558: 0010284 2020-2021 14.267: H0COC20021, H1COC21016 2020-2021 Pass-through Entity- 10.558: N/A - Direct 14.267: State of Colorado Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR ? 200.510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with ? 200.502 Condition ? The Organization excluded certain amounts from prior years' schedule of expenditures of federal awards. The amounts excluded for the prior two years are as follows: See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs - None Identification of How Questioned Costs Were Computed -N/A Context - The Organization mistakenly misclassified these grants as non-federal awards in prior years as follows. The exclusion of the activity would not have affected major program determination in those years. Total Federal Expenditures: See Schedule of Findings and Questioned Costs for chart/table. Cause and Effect - In prior years, the Organization did not have proper controls in place over the Schedule of Expenditures of Federal Awards to prevent a material error from occurring. The prior year Schedule of Expenditures of Federal Awards were understated by the amounts in the Error column of the Context section above. Recommendation - The Organization should improve controls by implementing a review of grants and a determination of whether they are federal or nonfederal by program managers. Views of Responsible Officials and Corrective Action Plan - During the year, the Organization created and hired for a new position, Director of Financial Analysis and Internal Controls/Contracts to provide additional oversight over the Schedule of Expenditures of Federal Awards. The control is now in place and working as of the issuance of the audit.
2022-002: Improper Preparation of Schedule of Expenditures of Federal Awards Identification of the federal program: U.S. Department of Education ALN 84.425 COVID-19 Education Stabilization Fund (ESF) Criteria or specific requirement: Per 2 CFR 200.510(b), the University must prepare a complete and accurate 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 in accordance with requirements in 2 CFR 200.502. Condition: The SEFA initially drafted and provided by the University was not complete as it did not include all ESF Institutional funds that should have been reportable for the year ended June 30, 2022. Cause: Management initially believed lost revenues were not reportable on the SEFA as they are not technically ?expenditures? in nature. Effect or potential effect: The University?s Schedule of Expenditures of Federal Awards excluded certain federal funding that were required to be reported as they did meet the Department of Education?s guidelines for reportable award expenditures. Questioned costs: None Context: The concept of lost revenues as introduced under various pandemic funding is not how federal awards are typically expended and this lead to internal confusion as to the need to report or not on the SEFA. Repeat finding: No Recommendation: We recommend management review applicable FAQ documents as to how Uniform Guidance relates to the funding received and how such funds should be reported on the SEFA, or not reported, as applicable. Views of responsible officials: The University agrees with the finding. Refer to the University?s corrective action plan.
2022-002: Improper Preparation of Schedule of Expenditures of Federal Awards Identification of the federal program: U.S. Department of Education ALN 84.425 COVID-19 Education Stabilization Fund (ESF) Criteria or specific requirement: Per 2 CFR 200.510(b), the University must prepare a complete and accurate 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 in accordance with requirements in 2 CFR 200.502. Condition: The SEFA initially drafted and provided by the University was not complete as it did not include all ESF Institutional funds that should have been reportable for the year ended June 30, 2022. Cause: Management initially believed lost revenues were not reportable on the SEFA as they are not technically ?expenditures? in nature. Effect or potential effect: The University?s Schedule of Expenditures of Federal Awards excluded certain federal funding that were required to be reported as they did meet the Department of Education?s guidelines for reportable award expenditures. Questioned costs: None Context: The concept of lost revenues as introduced under various pandemic funding is not how federal awards are typically expended and this lead to internal confusion as to the need to report or not on the SEFA. Repeat finding: No Recommendation: We recommend management review applicable FAQ documents as to how Uniform Guidance relates to the funding received and how such funds should be reported on the SEFA, or not reported, as applicable. Views of responsible officials: The University agrees with the finding. Refer to the University?s corrective action plan.
(2022-023) Title: Internal control over the submission and review of SNAP and P-EBT Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Health and Human Services Administrative and Financial Services State Bureau: Office for Family Independence Office of the State Controller Federal Agency: U.S. Department of Agriculture Assistance Listing Title: SNAP Cluster (COVID-19) Pandemic EBT Food Benefits (P-EBT) (COVID-19) Assistance Listing Number: 10.551, 10.561; 10.542 Federal Award Identification Number: SNAP Benefits, Maine; P-EBT Benefits, Maine Compliance Area: Reporting Type of Finding: Material weakness Material noncompliance Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding for Supplemental Nutrition Assistance Program (SNAP) benefits under ALN 10.551. In addition, the Department received funding for Pandemic EBT Food Benefits (P-EBT) under ALN 10.542. At the close of the fiscal year, the Department and its Service Center provided a summary of Federal expenditures to OSC that included SNAP Cluster and P-EBT expenditures; however, the summary did not specifically identify P-EBT expenditures separately as funding under ALN 10.542. This summary was then used by OSC to compile and prepare the SEFA and the related Notes to the SEFA. Upon preparation, P-EBT expenditures were erroneously reported as SNAP expenditures under ALN 10.551 in the SEFA and in the related Note 5 to the SEFA which outlines Noncash Awards. Subsequent OSC review procedures were not designed to detect and correct these errors. As a result, P-EBT expenditures were omitted from the State?s fiscal year 2022 SEFA and related Notes when provided to the Office of the State Auditor for audit purposes. Context: For fiscal year 2022, P-EBT expenditures totaling $61.5 million were incorrectly reported on the SEFA and in the Notes to the SEFA, resulting in the omission of a Federal program and the overstatement of SNAP benefit expenditures. Cause: ? Lack of adequate internal control relating to Department SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Incomplete or inaccurate amounts by Federal program and ALN on the SEFA would result in noncompliance with Federal regulations if undetected. The SEFA is submitted to the Federal government and may be used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department and its Service Center implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA and in the related Notes to the SEFA. Corrective Action Plan: See F-12 Management?s Response: DHHS and DHHS Financial Service Center Response: The DHHS and DHHS Financial Service Center agree with this finding. For the next SEFA for SFY 2023, the OFI will report SNAP and P- EBT Benefit expenditures for the associated ALN to the Service Center. The OFI will report any new ALN, as documented in the April 2022 Coronavirus State and Local fiscal Recovery Funds, Department of the Treasury Assistance Listing Recovery Funds, as verified by SNAP, and associated expenses to the Service Center, if applicable. The Financial Service Center will then provide a summary and backup of what is being reported on the SEFA to OFI for their written approval. The Financial Service Center will add to the reviewer?s checklist that the preparer has consulted and has proper backup with the OFI to verify that the benefits are reported under the correct ALN. This will be completed by December 31, 2023. DHHS Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, the Office of the State Auditor (OSA) recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-053, 2022-064, and 2022-092, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1108-01)
(2022-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Education Administrative and Financial Services State Bureau: Child Nutrition Services General Government Service Center Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster (COVID-19) Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: 214ME300L1603, 214ME301N1099, 214ME301N1199, 224ME301N1199, 224ME300L1603, 214ME102H1703, 224ME902N8903 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502; 2 CFR 200.510; 2 CFR 200, Appendix XI, OMB M- 20-26; Section 2202(a) Families First Coronavirus Response Act (FFCRA) The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended, including distribution or use of food commodities, and must be based on when the activity related to the Federal award occurs. For a cluster of programs, the schedule must list individual Federal programs within the cluster. To maximize the transparency and accountability of COVID-19 related award expenditures, OMB M-20-26 (June 18, 2020) instructed recipients and subrecipients to separately identify the COVID-19 Emergency Acts expenditures on the SEFA. Therefore, non-Federal entities should separately identify COVID-19 expenditures on the SEFA. For existing programs that have both COVID-19 expenditures and non-COVID-19 expenditures, this may be accomplished by identifying COVID-19 expenditures on the SEFA on a separate line by Assistance Listing number (ALN) with ?COVID-19? as a prefix to the program name. Several waivers were issued by Food and Nutrition Services under section 2202(a) of the FFCRA. These waivers allowed School Food Authorities to participate in various programs and be paid at higher rates, and allowed schools to be reimbursed for all meals served to students regardless of eligibility status. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: ? incorrectly reported expenditures for ALN 10.553 School Breakfast Program ($23.5 million) and ALN 10.556 Special Milk Program ($8,354) under ALN 10.555 National School Lunch Program. ? reported the amount of noncash assistance that the State was entitled to use ($5.9 million), rather than the amount that was actually used ($4.8 million). Furthermore, the entire amount was incorrectly reported under ALN 10.555 when a portion of this should have been reported under ALN 10.559 Summer Food Service Program for Children. ? did not specifically identify COVID-19 related expenditures for the Child Nutrition Cluster (CNC) on the State?s fiscal year 2022 SEFA; this has since been corrected. Furthermore, CNC expenditures increased significantly due to waivers issued under the FFCRA. These expenditures were issued under existing grant awards and therefore cannot be easily identified. As a result, these expenditures are not separately reported on the SEFA as COVID-19 expenditures. Context: In fiscal year 2022, CNC expenditures totaled $118 million. Of that amount: ? $1.7 million was expended under a COVID-19 specific grant. ? $4.8 million was expended as distributions of noncash food commodities. ? expenditures for the School Breakfast Program and Special Milk Program were $23.5 million and $8,354, respectively. Cause: ? Lack of adequate policies and procedures relating to Department SEFA submissions to OSC ? Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to ensure accurate preparation, review and submission of SEFA information to OSC. Corrective Action Plan: See F-15 Management?s Response: The Department agrees with this finding. The Department will report expenditures for the School Breakfast Program and Special Milk Program under the individual ALNs rather than including those expenditures in the broader ALN 10.555. The Department will report noncash assistance at the amount actually used rather than the amount authorized for use. The Department will add a note to the SEFA report indicating any COVID-19 expenditures that cannot be isolated due to waivers. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 22-1203-01)
(2022-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Education Administrative and Financial Services State Bureau: Child Nutrition Services General Government Service Center Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster (COVID-19) Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: 214ME300L1603, 214ME301N1099, 214ME301N1199, 224ME301N1199, 224ME300L1603, 214ME102H1703, 224ME902N8903 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502; 2 CFR 200.510; 2 CFR 200, Appendix XI, OMB M- 20-26; Section 2202(a) Families First Coronavirus Response Act (FFCRA) The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended, including distribution or use of food commodities, and must be based on when the activity related to the Federal award occurs. For a cluster of programs, the schedule must list individual Federal programs within the cluster. To maximize the transparency and accountability of COVID-19 related award expenditures, OMB M-20-26 (June 18, 2020) instructed recipients and subrecipients to separately identify the COVID-19 Emergency Acts expenditures on the SEFA. Therefore, non-Federal entities should separately identify COVID-19 expenditures on the SEFA. For existing programs that have both COVID-19 expenditures and non-COVID-19 expenditures, this may be accomplished by identifying COVID-19 expenditures on the SEFA on a separate line by Assistance Listing number (ALN) with ?COVID-19? as a prefix to the program name. Several waivers were issued by Food and Nutrition Services under section 2202(a) of the FFCRA. These waivers allowed School Food Authorities to participate in various programs and be paid at higher rates, and allowed schools to be reimbursed for all meals served to students regardless of eligibility status. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: ? incorrectly reported expenditures for ALN 10.553 School Breakfast Program ($23.5 million) and ALN 10.556 Special Milk Program ($8,354) under ALN 10.555 National School Lunch Program. ? reported the amount of noncash assistance that the State was entitled to use ($5.9 million), rather than the amount that was actually used ($4.8 million). Furthermore, the entire amount was incorrectly reported under ALN 10.555 when a portion of this should have been reported under ALN 10.559 Summer Food Service Program for Children. ? did not specifically identify COVID-19 related expenditures for the Child Nutrition Cluster (CNC) on the State?s fiscal year 2022 SEFA; this has since been corrected. Furthermore, CNC expenditures increased significantly due to waivers issued under the FFCRA. These expenditures were issued under existing grant awards and therefore cannot be easily identified. As a result, these expenditures are not separately reported on the SEFA as COVID-19 expenditures. Context: In fiscal year 2022, CNC expenditures totaled $118 million. Of that amount: ? $1.7 million was expended under a COVID-19 specific grant. ? $4.8 million was expended as distributions of noncash food commodities. ? expenditures for the School Breakfast Program and Special Milk Program were $23.5 million and $8,354, respectively. Cause: ? Lack of adequate policies and procedures relating to Department SEFA submissions to OSC ? Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to ensure accurate preparation, review and submission of SEFA information to OSC. Corrective Action Plan: See F-15 Management?s Response: The Department agrees with this finding. The Department will report expenditures for the School Breakfast Program and Special Milk Program under the individual ALNs rather than including those expenditures in the broader ALN 10.555. The Department will report noncash assistance at the amount actually used rather than the amount authorized for use. The Department will add a note to the SEFA report indicating any COVID-19 expenditures that cannot be isolated due to waivers. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 22-1203-01)
(2022-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Education Administrative and Financial Services State Bureau: Child Nutrition Services General Government Service Center Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster (COVID-19) Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: 214ME300L1603, 214ME301N1099, 214ME301N1199, 224ME301N1199, 224ME300L1603, 214ME102H1703, 224ME902N8903 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502; 2 CFR 200.510; 2 CFR 200, Appendix XI, OMB M- 20-26; Section 2202(a) Families First Coronavirus Response Act (FFCRA) The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended, including distribution or use of food commodities, and must be based on when the activity related to the Federal award occurs. For a cluster of programs, the schedule must list individual Federal programs within the cluster. To maximize the transparency and accountability of COVID-19 related award expenditures, OMB M-20-26 (June 18, 2020) instructed recipients and subrecipients to separately identify the COVID-19 Emergency Acts expenditures on the SEFA. Therefore, non-Federal entities should separately identify COVID-19 expenditures on the SEFA. For existing programs that have both COVID-19 expenditures and non-COVID-19 expenditures, this may be accomplished by identifying COVID-19 expenditures on the SEFA on a separate line by Assistance Listing number (ALN) with ?COVID-19? as a prefix to the program name. Several waivers were issued by Food and Nutrition Services under section 2202(a) of the FFCRA. These waivers allowed School Food Authorities to participate in various programs and be paid at higher rates, and allowed schools to be reimbursed for all meals served to students regardless of eligibility status. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: ? incorrectly reported expenditures for ALN 10.553 School Breakfast Program ($23.5 million) and ALN 10.556 Special Milk Program ($8,354) under ALN 10.555 National School Lunch Program. ? reported the amount of noncash assistance that the State was entitled to use ($5.9 million), rather than the amount that was actually used ($4.8 million). Furthermore, the entire amount was incorrectly reported under ALN 10.555 when a portion of this should have been reported under ALN 10.559 Summer Food Service Program for Children. ? did not specifically identify COVID-19 related expenditures for the Child Nutrition Cluster (CNC) on the State?s fiscal year 2022 SEFA; this has since been corrected. Furthermore, CNC expenditures increased significantly due to waivers issued under the FFCRA. These expenditures were issued under existing grant awards and therefore cannot be easily identified. As a result, these expenditures are not separately reported on the SEFA as COVID-19 expenditures. Context: In fiscal year 2022, CNC expenditures totaled $118 million. Of that amount: ? $1.7 million was expended under a COVID-19 specific grant. ? $4.8 million was expended as distributions of noncash food commodities. ? expenditures for the School Breakfast Program and Special Milk Program were $23.5 million and $8,354, respectively. Cause: ? Lack of adequate policies and procedures relating to Department SEFA submissions to OSC ? Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to ensure accurate preparation, review and submission of SEFA information to OSC. Corrective Action Plan: See F-15 Management?s Response: The Department agrees with this finding. The Department will report expenditures for the School Breakfast Program and Special Milk Program under the individual ALNs rather than including those expenditures in the broader ALN 10.555. The Department will report noncash assistance at the amount actually used rather than the amount authorized for use. The Department will add a note to the SEFA report indicating any COVID-19 expenditures that cannot be isolated due to waivers. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 22-1203-01)
(2022-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Education Administrative and Financial Services State Bureau: Child Nutrition Services General Government Service Center Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster (COVID-19) Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: 214ME300L1603, 214ME301N1099, 214ME301N1199, 224ME301N1199, 224ME300L1603, 214ME102H1703, 224ME902N8903 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502; 2 CFR 200.510; 2 CFR 200, Appendix XI, OMB M- 20-26; Section 2202(a) Families First Coronavirus Response Act (FFCRA) The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended, including distribution or use of food commodities, and must be based on when the activity related to the Federal award occurs. For a cluster of programs, the schedule must list individual Federal programs within the cluster. To maximize the transparency and accountability of COVID-19 related award expenditures, OMB M-20-26 (June 18, 2020) instructed recipients and subrecipients to separately identify the COVID-19 Emergency Acts expenditures on the SEFA. Therefore, non-Federal entities should separately identify COVID-19 expenditures on the SEFA. For existing programs that have both COVID-19 expenditures and non-COVID-19 expenditures, this may be accomplished by identifying COVID-19 expenditures on the SEFA on a separate line by Assistance Listing number (ALN) with ?COVID-19? as a prefix to the program name. Several waivers were issued by Food and Nutrition Services under section 2202(a) of the FFCRA. These waivers allowed School Food Authorities to participate in various programs and be paid at higher rates, and allowed schools to be reimbursed for all meals served to students regardless of eligibility status. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: ? incorrectly reported expenditures for ALN 10.553 School Breakfast Program ($23.5 million) and ALN 10.556 Special Milk Program ($8,354) under ALN 10.555 National School Lunch Program. ? reported the amount of noncash assistance that the State was entitled to use ($5.9 million), rather than the amount that was actually used ($4.8 million). Furthermore, the entire amount was incorrectly reported under ALN 10.555 when a portion of this should have been reported under ALN 10.559 Summer Food Service Program for Children. ? did not specifically identify COVID-19 related expenditures for the Child Nutrition Cluster (CNC) on the State?s fiscal year 2022 SEFA; this has since been corrected. Furthermore, CNC expenditures increased significantly due to waivers issued under the FFCRA. These expenditures were issued under existing grant awards and therefore cannot be easily identified. As a result, these expenditures are not separately reported on the SEFA as COVID-19 expenditures. Context: In fiscal year 2022, CNC expenditures totaled $118 million. Of that amount: ? $1.7 million was expended under a COVID-19 specific grant. ? $4.8 million was expended as distributions of noncash food commodities. ? expenditures for the School Breakfast Program and Special Milk Program were $23.5 million and $8,354, respectively. Cause: ? Lack of adequate policies and procedures relating to Department SEFA submissions to OSC ? Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to ensure accurate preparation, review and submission of SEFA information to OSC. Corrective Action Plan: See F-15 Management?s Response: The Department agrees with this finding. The Department will report expenditures for the School Breakfast Program and Special Milk Program under the individual ALNs rather than including those expenditures in the broader ALN 10.555. The Department will report noncash assistance at the amount actually used rather than the amount authorized for use. The Department will add a note to the SEFA report indicating any COVID-19 expenditures that cannot be isolated due to waivers. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 22-1203-01)
(2022-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Education Administrative and Financial Services State Bureau: Child Nutrition Services General Government Service Center Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster (COVID-19) Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: 214ME300L1603, 214ME301N1099, 214ME301N1199, 224ME301N1199, 224ME300L1603, 214ME102H1703, 224ME902N8903 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502; 2 CFR 200.510; 2 CFR 200, Appendix XI, OMB M- 20-26; Section 2202(a) Families First Coronavirus Response Act (FFCRA) The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended, including distribution or use of food commodities, and must be based on when the activity related to the Federal award occurs. For a cluster of programs, the schedule must list individual Federal programs within the cluster. To maximize the transparency and accountability of COVID-19 related award expenditures, OMB M-20-26 (June 18, 2020) instructed recipients and subrecipients to separately identify the COVID-19 Emergency Acts expenditures on the SEFA. Therefore, non-Federal entities should separately identify COVID-19 expenditures on the SEFA. For existing programs that have both COVID-19 expenditures and non-COVID-19 expenditures, this may be accomplished by identifying COVID-19 expenditures on the SEFA on a separate line by Assistance Listing number (ALN) with ?COVID-19? as a prefix to the program name. Several waivers were issued by Food and Nutrition Services under section 2202(a) of the FFCRA. These waivers allowed School Food Authorities to participate in various programs and be paid at higher rates, and allowed schools to be reimbursed for all meals served to students regardless of eligibility status. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: ? incorrectly reported expenditures for ALN 10.553 School Breakfast Program ($23.5 million) and ALN 10.556 Special Milk Program ($8,354) under ALN 10.555 National School Lunch Program. ? reported the amount of noncash assistance that the State was entitled to use ($5.9 million), rather than the amount that was actually used ($4.8 million). Furthermore, the entire amount was incorrectly reported under ALN 10.555 when a portion of this should have been reported under ALN 10.559 Summer Food Service Program for Children. ? did not specifically identify COVID-19 related expenditures for the Child Nutrition Cluster (CNC) on the State?s fiscal year 2022 SEFA; this has since been corrected. Furthermore, CNC expenditures increased significantly due to waivers issued under the FFCRA. These expenditures were issued under existing grant awards and therefore cannot be easily identified. As a result, these expenditures are not separately reported on the SEFA as COVID-19 expenditures. Context: In fiscal year 2022, CNC expenditures totaled $118 million. Of that amount: ? $1.7 million was expended under a COVID-19 specific grant. ? $4.8 million was expended as distributions of noncash food commodities. ? expenditures for the School Breakfast Program and Special Milk Program were $23.5 million and $8,354, respectively. Cause: ? Lack of adequate policies and procedures relating to Department SEFA submissions to OSC ? Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to ensure accurate preparation, review and submission of SEFA information to OSC. Corrective Action Plan: See F-15 Management?s Response: The Department agrees with this finding. The Department will report expenditures for the School Breakfast Program and Special Milk Program under the individual ALNs rather than including those expenditures in the broader ALN 10.555. The Department will report noncash assistance at the amount actually used rather than the amount authorized for use. The Department will add a note to the SEFA report indicating any COVID-19 expenditures that cannot be isolated due to waivers. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 22-1203-01)
(2022-023) Title: Internal control over the submission and review of SNAP and P-EBT Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Health and Human Services Administrative and Financial Services State Bureau: Office for Family Independence Office of the State Controller Federal Agency: U.S. Department of Agriculture Assistance Listing Title: SNAP Cluster (COVID-19) Pandemic EBT Food Benefits (P-EBT) (COVID-19) Assistance Listing Number: 10.551, 10.561; 10.542 Federal Award Identification Number: SNAP Benefits, Maine; P-EBT Benefits, Maine Compliance Area: Reporting Type of Finding: Material weakness Material noncompliance Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding for Supplemental Nutrition Assistance Program (SNAP) benefits under ALN 10.551. In addition, the Department received funding for Pandemic EBT Food Benefits (P-EBT) under ALN 10.542. At the close of the fiscal year, the Department and its Service Center provided a summary of Federal expenditures to OSC that included SNAP Cluster and P-EBT expenditures; however, the summary did not specifically identify P-EBT expenditures separately as funding under ALN 10.542. This summary was then used by OSC to compile and prepare the SEFA and the related Notes to the SEFA. Upon preparation, P-EBT expenditures were erroneously reported as SNAP expenditures under ALN 10.551 in the SEFA and in the related Note 5 to the SEFA which outlines Noncash Awards. Subsequent OSC review procedures were not designed to detect and correct these errors. As a result, P-EBT expenditures were omitted from the State?s fiscal year 2022 SEFA and related Notes when provided to the Office of the State Auditor for audit purposes. Context: For fiscal year 2022, P-EBT expenditures totaling $61.5 million were incorrectly reported on the SEFA and in the Notes to the SEFA, resulting in the omission of a Federal program and the overstatement of SNAP benefit expenditures. Cause: ? Lack of adequate internal control relating to Department SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Incomplete or inaccurate amounts by Federal program and ALN on the SEFA would result in noncompliance with Federal regulations if undetected. The SEFA is submitted to the Federal government and may be used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department and its Service Center implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA and in the related Notes to the SEFA. Corrective Action Plan: See F-12 Management?s Response: DHHS and DHHS Financial Service Center Response: The DHHS and DHHS Financial Service Center agree with this finding. For the next SEFA for SFY 2023, the OFI will report SNAP and P- EBT Benefit expenditures for the associated ALN to the Service Center. The OFI will report any new ALN, as documented in the April 2022 Coronavirus State and Local fiscal Recovery Funds, Department of the Treasury Assistance Listing Recovery Funds, as verified by SNAP, and associated expenses to the Service Center, if applicable. The Financial Service Center will then provide a summary and backup of what is being reported on the SEFA to OFI for their written approval. The Financial Service Center will add to the reviewer?s checklist that the preparer has consulted and has proper backup with the OFI to verify that the benefits are reported under the correct ALN. This will be completed by December 31, 2023. DHHS Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, the Office of the State Auditor (OSA) recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-053, 2022-064, and 2022-092, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1108-01)
(2022-023) Title: Internal control over the submission and review of SNAP and P-EBT Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Health and Human Services Administrative and Financial Services State Bureau: Office for Family Independence Office of the State Controller Federal Agency: U.S. Department of Agriculture Assistance Listing Title: SNAP Cluster (COVID-19) Pandemic EBT Food Benefits (P-EBT) (COVID-19) Assistance Listing Number: 10.551, 10.561; 10.542 Federal Award Identification Number: SNAP Benefits, Maine; P-EBT Benefits, Maine Compliance Area: Reporting Type of Finding: Material weakness Material noncompliance Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding for Supplemental Nutrition Assistance Program (SNAP) benefits under ALN 10.551. In addition, the Department received funding for Pandemic EBT Food Benefits (P-EBT) under ALN 10.542. At the close of the fiscal year, the Department and its Service Center provided a summary of Federal expenditures to OSC that included SNAP Cluster and P-EBT expenditures; however, the summary did not specifically identify P-EBT expenditures separately as funding under ALN 10.542. This summary was then used by OSC to compile and prepare the SEFA and the related Notes to the SEFA. Upon preparation, P-EBT expenditures were erroneously reported as SNAP expenditures under ALN 10.551 in the SEFA and in the related Note 5 to the SEFA which outlines Noncash Awards. Subsequent OSC review procedures were not designed to detect and correct these errors. As a result, P-EBT expenditures were omitted from the State?s fiscal year 2022 SEFA and related Notes when provided to the Office of the State Auditor for audit purposes. Context: For fiscal year 2022, P-EBT expenditures totaling $61.5 million were incorrectly reported on the SEFA and in the Notes to the SEFA, resulting in the omission of a Federal program and the overstatement of SNAP benefit expenditures. Cause: ? Lack of adequate internal control relating to Department SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Incomplete or inaccurate amounts by Federal program and ALN on the SEFA would result in noncompliance with Federal regulations if undetected. The SEFA is submitted to the Federal government and may be used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department and its Service Center implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA and in the related Notes to the SEFA. Corrective Action Plan: See F-12 Management?s Response: DHHS and DHHS Financial Service Center Response: The DHHS and DHHS Financial Service Center agree with this finding. For the next SEFA for SFY 2023, the OFI will report SNAP and P- EBT Benefit expenditures for the associated ALN to the Service Center. The OFI will report any new ALN, as documented in the April 2022 Coronavirus State and Local fiscal Recovery Funds, Department of the Treasury Assistance Listing Recovery Funds, as verified by SNAP, and associated expenses to the Service Center, if applicable. The Financial Service Center will then provide a summary and backup of what is being reported on the SEFA to OFI for their written approval. The Financial Service Center will add to the reviewer?s checklist that the preparer has consulted and has proper backup with the OFI to verify that the benefits are reported under the correct ALN. This will be completed by December 31, 2023. DHHS Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, the Office of the State Auditor (OSA) recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-053, 2022-064, and 2022-092, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1108-01)
(2022-034) Title: Internal control over the submission of CNC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Education Administrative and Financial Services State Bureau: Child Nutrition Services General Government Service Center Federal Agency: U.S. Department of Agriculture Assistance Listing Title: Child Nutrition Cluster (COVID-19) Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Federal Award Identification Number: 214ME300L1603, 214ME301N1099, 214ME301N1199, 224ME301N1199, 224ME300L1603, 214ME102H1703, 224ME902N8903 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.502; 2 CFR 200.510; 2 CFR 200, Appendix XI, OMB M- 20-26; Section 2202(a) Families First Coronavirus Response Act (FFCRA) The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended, including distribution or use of food commodities, and must be based on when the activity related to the Federal award occurs. For a cluster of programs, the schedule must list individual Federal programs within the cluster. To maximize the transparency and accountability of COVID-19 related award expenditures, OMB M-20-26 (June 18, 2020) instructed recipients and subrecipients to separately identify the COVID-19 Emergency Acts expenditures on the SEFA. Therefore, non-Federal entities should separately identify COVID-19 expenditures on the SEFA. For existing programs that have both COVID-19 expenditures and non-COVID-19 expenditures, this may be accomplished by identifying COVID-19 expenditures on the SEFA on a separate line by Assistance Listing number (ALN) with ?COVID-19? as a prefix to the program name. Several waivers were issued by Food and Nutrition Services under section 2202(a) of the FFCRA. These waivers allowed School Food Authorities to participate in various programs and be paid at higher rates, and allowed schools to be reimbursed for all meals served to students regardless of eligibility status. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. The Department submitted exhibits to OSC that: ? incorrectly reported expenditures for ALN 10.553 School Breakfast Program ($23.5 million) and ALN 10.556 Special Milk Program ($8,354) under ALN 10.555 National School Lunch Program. ? reported the amount of noncash assistance that the State was entitled to use ($5.9 million), rather than the amount that was actually used ($4.8 million). Furthermore, the entire amount was incorrectly reported under ALN 10.555 when a portion of this should have been reported under ALN 10.559 Summer Food Service Program for Children. ? did not specifically identify COVID-19 related expenditures for the Child Nutrition Cluster (CNC) on the State?s fiscal year 2022 SEFA; this has since been corrected. Furthermore, CNC expenditures increased significantly due to waivers issued under the FFCRA. These expenditures were issued under existing grant awards and therefore cannot be easily identified. As a result, these expenditures are not separately reported on the SEFA as COVID-19 expenditures. Context: In fiscal year 2022, CNC expenditures totaled $118 million. Of that amount: ? $1.7 million was expended under a COVID-19 specific grant. ? $4.8 million was expended as distributions of noncash food commodities. ? expenditures for the School Breakfast Program and Special Milk Program were $23.5 million and $8,354, respectively. Cause: ? Lack of adequate policies and procedures relating to Department SEFA submissions to OSC ? Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to ensure accurate preparation, review and submission of SEFA information to OSC. Corrective Action Plan: See F-15 Management?s Response: The Department agrees with this finding. The Department will report expenditures for the School Breakfast Program and Special Milk Program under the individual ALNs rather than including those expenditures in the broader ALN 10.555. The Department will report noncash assistance at the amount actually used rather than the amount authorized for use. The Department will add a note to the SEFA report indicating any COVID-19 expenditures that cannot be isolated due to waivers. Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 (State Number: 22-1203-01)
(2022-053) Title: Internal control over submission and review of ESF Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See Schedule of Findings and Questioned Costs for chart/table State Department: Education Administrative and Financial Services State Bureau: Commissioner?s Office Office of the State Controller Federal Agency: U.S. Department of Education Assistance Listing Title: Education Stabilization Fund (ESF) (COVID-19) Assistance Listing Number: 84.425B, 84.425C, 84.425D, 84.425R Federal Award Identification Number: S425C200004, S425C210004, S425D200004, S425D210004, S425U210004, S425W210020, S425R210044, S425B200039 Compliance Area: Reporting Type of Finding: Material weakness Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding from the Education Stabilization Fund (ESF) under ALN 84.425. The U.S. Department of Education awarded ESF funds to grantees, including the State, under 23 subprograms. An alphabetic character at the end of ALN 84.425 is used to delineate each subprogram. Each subprogram has its own funding requirements and compliance requirements. At the close of the fiscal year, the Department provided a summary of ESF expenditures to OSC; however, the summary did not properly identify ESF subprograms and related expenditures. This summary was then used by OSC to compile and prepare the SEFA. The summary of ESF expenditures resulted in the following errors: ? Expenditures under subprogram 84.425B Discretionary Grants: Rethink K-12 Education Model Grants, were erroneously reported under 84.425R Coronavirus Response and Relief Supplemental Appropriations Act, 2021 ? Emergency Assistance to Non-Public Schools. As a result, subprogram 84.425B was originally omitted from the SEFA. ? Subprogram 84.425C Governor?s Emergency Education Relief was originally missing its subprogram alphabetic character designation and was incorrectly labeled as 84.425. This alphabetic character designation is required for SEFA and Federal reporting purposes. ? The Department transferred allowable prior year ESF expenditures to the Coronavirus Relief Fund (CRF) during fiscal year 2022. These amounts reduced the current year expenditures of the program, and as a result, ESF program totals were understated on the SEFA by $1.4 million. Subsequent OSC review procedures were not designed to detect and correct the errors outlined above. As a result, the errors were included on the State?s fiscal year 2022 SEFA provided to the Office of the State Auditor (OSA) for audit purposes. Context: The 2022 SEFA originally reported expenditures under ESF subprograms totaling $125 million; however, this included the following errors: ? Subprogram 84.425R reported expenditures totaling $4.8 million. This amount incorrectly included $1.7 million of expenditures that should have been listed separately under 84.425B. ? $1.4 million of prior year ESF expenditures were transferred out of current year SEFA totals to the CRF, resulting in an understatement of fiscal year 2022 ESF expenditures. Cause: ? Lack of adequate internal control relating to Department SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Incomplete or inaccurate amounts by Federal program or subprogram and ALN on the SEFA would result in noncompliance with Federal regulations if undetected. The SEFA is submitted to the Federal government and may be used for programmatic, policy or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA. Corrective Action Plan: See F-20 Management?s Response: DOE Response: The Department agrees with this finding. The Department will be mindful to detect typographical errors through an increased level of scrutiny when conducting the review. DOE Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, OSA recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-023, 2022-064, and 2022-092, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1235-01)
(2022-053) Title: Internal control over submission and review of ESF Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See Schedule of Findings and Questioned Costs for chart/table State Department: Education Administrative and Financial Services State Bureau: Commissioner?s Office Office of the State Controller Federal Agency: U.S. Department of Education Assistance Listing Title: Education Stabilization Fund (ESF) (COVID-19) Assistance Listing Number: 84.425B, 84.425C, 84.425D, 84.425R Federal Award Identification Number: S425C200004, S425C210004, S425D200004, S425D210004, S425U210004, S425W210020, S425R210044, S425B200039 Compliance Area: Reporting Type of Finding: Material weakness Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding from the Education Stabilization Fund (ESF) under ALN 84.425. The U.S. Department of Education awarded ESF funds to grantees, including the State, under 23 subprograms. An alphabetic character at the end of ALN 84.425 is used to delineate each subprogram. Each subprogram has its own funding requirements and compliance requirements. At the close of the fiscal year, the Department provided a summary of ESF expenditures to OSC; however, the summary did not properly identify ESF subprograms and related expenditures. This summary was then used by OSC to compile and prepare the SEFA. The summary of ESF expenditures resulted in the following errors: ? Expenditures under subprogram 84.425B Discretionary Grants: Rethink K-12 Education Model Grants, were erroneously reported under 84.425R Coronavirus Response and Relief Supplemental Appropriations Act, 2021 ? Emergency Assistance to Non-Public Schools. As a result, subprogram 84.425B was originally omitted from the SEFA. ? Subprogram 84.425C Governor?s Emergency Education Relief was originally missing its subprogram alphabetic character designation and was incorrectly labeled as 84.425. This alphabetic character designation is required for SEFA and Federal reporting purposes. ? The Department transferred allowable prior year ESF expenditures to the Coronavirus Relief Fund (CRF) during fiscal year 2022. These amounts reduced the current year expenditures of the program, and as a result, ESF program totals were understated on the SEFA by $1.4 million. Subsequent OSC review procedures were not designed to detect and correct the errors outlined above. As a result, the errors were included on the State?s fiscal year 2022 SEFA provided to the Office of the State Auditor (OSA) for audit purposes. Context: The 2022 SEFA originally reported expenditures under ESF subprograms totaling $125 million; however, this included the following errors: ? Subprogram 84.425R reported expenditures totaling $4.8 million. This amount incorrectly included $1.7 million of expenditures that should have been listed separately under 84.425B. ? $1.4 million of prior year ESF expenditures were transferred out of current year SEFA totals to the CRF, resulting in an understatement of fiscal year 2022 ESF expenditures. Cause: ? Lack of adequate internal control relating to Department SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Incomplete or inaccurate amounts by Federal program or subprogram and ALN on the SEFA would result in noncompliance with Federal regulations if undetected. The SEFA is submitted to the Federal government and may be used for programmatic, policy or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA. Corrective Action Plan: See F-20 Management?s Response: DOE Response: The Department agrees with this finding. The Department will be mindful to detect typographical errors through an increased level of scrutiny when conducting the review. DOE Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, OSA recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-023, 2022-064, and 2022-092, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1235-01)
(2022-053) Title: Internal control over submission and review of ESF Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See Schedule of Findings and Questioned Costs for chart/table State Department: Education Administrative and Financial Services State Bureau: Commissioner?s Office Office of the State Controller Federal Agency: U.S. Department of Education Assistance Listing Title: Education Stabilization Fund (ESF) (COVID-19) Assistance Listing Number: 84.425B, 84.425C, 84.425D, 84.425R Federal Award Identification Number: S425C200004, S425C210004, S425D200004, S425D210004, S425U210004, S425W210020, S425R210044, S425B200039 Compliance Area: Reporting Type of Finding: Material weakness Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding from the Education Stabilization Fund (ESF) under ALN 84.425. The U.S. Department of Education awarded ESF funds to grantees, including the State, under 23 subprograms. An alphabetic character at the end of ALN 84.425 is used to delineate each subprogram. Each subprogram has its own funding requirements and compliance requirements. At the close of the fiscal year, the Department provided a summary of ESF expenditures to OSC; however, the summary did not properly identify ESF subprograms and related expenditures. This summary was then used by OSC to compile and prepare the SEFA. The summary of ESF expenditures resulted in the following errors: ? Expenditures under subprogram 84.425B Discretionary Grants: Rethink K-12 Education Model Grants, were erroneously reported under 84.425R Coronavirus Response and Relief Supplemental Appropriations Act, 2021 ? Emergency Assistance to Non-Public Schools. As a result, subprogram 84.425B was originally omitted from the SEFA. ? Subprogram 84.425C Governor?s Emergency Education Relief was originally missing its subprogram alphabetic character designation and was incorrectly labeled as 84.425. This alphabetic character designation is required for SEFA and Federal reporting purposes. ? The Department transferred allowable prior year ESF expenditures to the Coronavirus Relief Fund (CRF) during fiscal year 2022. These amounts reduced the current year expenditures of the program, and as a result, ESF program totals were understated on the SEFA by $1.4 million. Subsequent OSC review procedures were not designed to detect and correct the errors outlined above. As a result, the errors were included on the State?s fiscal year 2022 SEFA provided to the Office of the State Auditor (OSA) for audit purposes. Context: The 2022 SEFA originally reported expenditures under ESF subprograms totaling $125 million; however, this included the following errors: ? Subprogram 84.425R reported expenditures totaling $4.8 million. This amount incorrectly included $1.7 million of expenditures that should have been listed separately under 84.425B. ? $1.4 million of prior year ESF expenditures were transferred out of current year SEFA totals to the CRF, resulting in an understatement of fiscal year 2022 ESF expenditures. Cause: ? Lack of adequate internal control relating to Department SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Incomplete or inaccurate amounts by Federal program or subprogram and ALN on the SEFA would result in noncompliance with Federal regulations if undetected. The SEFA is submitted to the Federal government and may be used for programmatic, policy or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA. Corrective Action Plan: See F-20 Management?s Response: DOE Response: The Department agrees with this finding. The Department will be mindful to detect typographical errors through an increased level of scrutiny when conducting the review. DOE Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, OSA recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-023, 2022-064, and 2022-092, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1235-01)
(2022-053) Title: Internal control over submission and review of ESF Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See Schedule of Findings and Questioned Costs for chart/table State Department: Education Administrative and Financial Services State Bureau: Commissioner?s Office Office of the State Controller Federal Agency: U.S. Department of Education Assistance Listing Title: Education Stabilization Fund (ESF) (COVID-19) Assistance Listing Number: 84.425B, 84.425C, 84.425D, 84.425R Federal Award Identification Number: S425C200004, S425C210004, S425D200004, S425D210004, S425U210004, S425W210020, S425R210044, S425B200039 Compliance Area: Reporting Type of Finding: Material weakness Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding from the Education Stabilization Fund (ESF) under ALN 84.425. The U.S. Department of Education awarded ESF funds to grantees, including the State, under 23 subprograms. An alphabetic character at the end of ALN 84.425 is used to delineate each subprogram. Each subprogram has its own funding requirements and compliance requirements. At the close of the fiscal year, the Department provided a summary of ESF expenditures to OSC; however, the summary did not properly identify ESF subprograms and related expenditures. This summary was then used by OSC to compile and prepare the SEFA. The summary of ESF expenditures resulted in the following errors: ? Expenditures under subprogram 84.425B Discretionary Grants: Rethink K-12 Education Model Grants, were erroneously reported under 84.425R Coronavirus Response and Relief Supplemental Appropriations Act, 2021 ? Emergency Assistance to Non-Public Schools. As a result, subprogram 84.425B was originally omitted from the SEFA. ? Subprogram 84.425C Governor?s Emergency Education Relief was originally missing its subprogram alphabetic character designation and was incorrectly labeled as 84.425. This alphabetic character designation is required for SEFA and Federal reporting purposes. ? The Department transferred allowable prior year ESF expenditures to the Coronavirus Relief Fund (CRF) during fiscal year 2022. These amounts reduced the current year expenditures of the program, and as a result, ESF program totals were understated on the SEFA by $1.4 million. Subsequent OSC review procedures were not designed to detect and correct the errors outlined above. As a result, the errors were included on the State?s fiscal year 2022 SEFA provided to the Office of the State Auditor (OSA) for audit purposes. Context: The 2022 SEFA originally reported expenditures under ESF subprograms totaling $125 million; however, this included the following errors: ? Subprogram 84.425R reported expenditures totaling $4.8 million. This amount incorrectly included $1.7 million of expenditures that should have been listed separately under 84.425B. ? $1.4 million of prior year ESF expenditures were transferred out of current year SEFA totals to the CRF, resulting in an understatement of fiscal year 2022 ESF expenditures. Cause: ? Lack of adequate internal control relating to Department SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Incomplete or inaccurate amounts by Federal program or subprogram and ALN on the SEFA would result in noncompliance with Federal regulations if undetected. The SEFA is submitted to the Federal government and may be used for programmatic, policy or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA. Corrective Action Plan: See F-20 Management?s Response: DOE Response: The Department agrees with this finding. The Department will be mindful to detect typographical errors through an increased level of scrutiny when conducting the review. DOE Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, OSA recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-023, 2022-064, and 2022-092, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1235-01)
(2022-060) Title: Internal control over the submission of ICA Schedule of Expenditures of Federal Awards reporting needs improvement Prior Year Findings: None State Department: Health and Human Services Administrative and Financial Services State Bureau: Maine Center for Disease Control & Prevention Health and Human Services Service Center Federal Agency: U.S. Department of Health and Human Services Assistance Listing Title: Immunization Cooperative Agreements (COVID-19) Assistance Listing Number: 93.268 Federal Award Identification Number: NH23IP922604 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding for the Immunization Cooperative Agreements (ICA) program. At the close of the fiscal year, the Department and its Service Center provided a summary of Federal ICA expenditures to OSC which included noncash vaccine awards; however, the summary included the wrong fiscal year?s noncash vaccine award data. This summary was then used by OSC to compile and prepare the SEFA and the related Notes to the SEFA. As a result, ICA expenditures were inaccurately reported on the State?s fiscal year 2022 SEFA and related Notes when provided to the Office of the State Auditor for audit purposes. Context: In fiscal year 2022, noncash flu vaccines totaling $169,070 were not reported to OSC by the Department for inclusion in the SEFA. Cause: Lack of adequate internal control relating to Department SEFA submissions to OSC Effect: ? Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. ? Inaccurate information was reported in the fiscal year 2022 Annual Comprehensive Financial Report. Recommendation: We recommend that the Department and its Service Center implement additional procedures to improve preparation and submission of SEFA information to OSC. These control procedures will ensure that expenditures are reported accurately on the SEFA and in the related Notes to the SEFA. Corrective Action Plan: See F-22 Management?s Response: The DHHS and DHHS Financial Service Center agree with this finding. For the next SEFA for SFY 2023, when the request is sent from the Financial Service Center to the MIP Senior Health Program Manager (SHPM), the SHPM will request the information from the MIP Planning and Research Associate. The SHPM will be required to review the requested data prior to the response, which will include fiscal year accuracy of the reports. The Financial Service Center will then provide a summary and backup of what is being reported on the SEFA to CDC?s Immunization program for their written approval. The Financial Service Center will add to the reviewer?s checklist that the preparer has consulted and has proper backup with CDC?s Immunization?s program to verify that the information provided was accurate. This will be completed by 12/31/2023. Contact: Jessica Shiminski, Health Program Manager, Maine Center for Disease Control & Prevention, DHHS, 207-287-7087 (State Number: 22-1118-01)
(2022-060) Title: Internal control over the submission of ICA Schedule of Expenditures of Federal Awards reporting needs improvement Prior Year Findings: None State Department: Health and Human Services Administrative and Financial Services State Bureau: Maine Center for Disease Control & Prevention Health and Human Services Service Center Federal Agency: U.S. Department of Health and Human Services Assistance Listing Title: Immunization Cooperative Agreements (COVID-19) Assistance Listing Number: 93.268 Federal Award Identification Number: NH23IP922604 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding for the Immunization Cooperative Agreements (ICA) program. At the close of the fiscal year, the Department and its Service Center provided a summary of Federal ICA expenditures to OSC which included noncash vaccine awards; however, the summary included the wrong fiscal year?s noncash vaccine award data. This summary was then used by OSC to compile and prepare the SEFA and the related Notes to the SEFA. As a result, ICA expenditures were inaccurately reported on the State?s fiscal year 2022 SEFA and related Notes when provided to the Office of the State Auditor for audit purposes. Context: In fiscal year 2022, noncash flu vaccines totaling $169,070 were not reported to OSC by the Department for inclusion in the SEFA. Cause: Lack of adequate internal control relating to Department SEFA submissions to OSC Effect: ? Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. ? Inaccurate information was reported in the fiscal year 2022 Annual Comprehensive Financial Report. Recommendation: We recommend that the Department and its Service Center implement additional procedures to improve preparation and submission of SEFA information to OSC. These control procedures will ensure that expenditures are reported accurately on the SEFA and in the related Notes to the SEFA. Corrective Action Plan: See F-22 Management?s Response: The DHHS and DHHS Financial Service Center agree with this finding. For the next SEFA for SFY 2023, when the request is sent from the Financial Service Center to the MIP Senior Health Program Manager (SHPM), the SHPM will request the information from the MIP Planning and Research Associate. The SHPM will be required to review the requested data prior to the response, which will include fiscal year accuracy of the reports. The Financial Service Center will then provide a summary and backup of what is being reported on the SEFA to CDC?s Immunization program for their written approval. The Financial Service Center will add to the reviewer?s checklist that the preparer has consulted and has proper backup with CDC?s Immunization?s program to verify that the information provided was accurate. This will be completed by 12/31/2023. Contact: Jessica Shiminski, Health Program Manager, Maine Center for Disease Control & Prevention, DHHS, 207-287-7087 (State Number: 22-1118-01)
(2022-064) Title: Internal control over submission and review of ELC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Health and Human Services Administrative and Financial Services State Bureau: Maine Center for Disease Control & Prevention Health and Human Services Service Center Office of the State Controller Federal Agency: U.S. Department of Health and Human Services Assistance Listing Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (COVID-19) Assistance Listing Number: 93.323 Federal Award Identification Number: NU50CK000523 Compliance Area: Reporting Type of Finding: Material weakness Material noncompliance Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. At the close of the fiscal year, the Department and its Service Center reported Federal expenditures of $45 million under the ELC program to OSC; however, current year expenditures actually totaled $59 million. This information was then used by OSC to compile and prepare the SEFA. Subsequent OSC review procedures were not designed to detect and correct this error. As a result, ELC expenditures were incorrect on the State?s fiscal year 2022 SEFA when provided to the Office of the State Auditor for audit purposes. Context: The 2022 SEFA originally reported total expenditures under ELC totaling $45 million; however, this included $14 million of prior year ELC expenditures that were transferred out of current year SEFA totals to the Coronavirus Relief Fund, resulting in an understatement of fiscal year ELC expenditures. Cause: ? Lack of adequate internal control relating to SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Incomplete or inaccurate amounts by Federal program on the SEFA would result in noncompliance with Federal regulations if undetected. The SEFA is submitted to the Federal government and may be used for programmatic, policy or statistical purposes. Recommendation: We recommend that the Department work with its Service Center to implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA. Corrective Action Plan: See F-23 Management?s Response: DHHS and DHHS Financial Service Center Response: The DHHS and the DHHS Financial Service Center agree with this finding. The Financial Service Center will work with OSC to develop and implement additional procedures related to reporting of prior period adjustments beginning with the SEFA that is for the State Fiscal Year 2023, by December 31, 2023. DHHS Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, the Office of the State Auditor (OSA) recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-023, 2022-053, and 2022-092, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1156-02)
(2022-064) Title: Internal control over submission and review of ELC Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Health and Human Services Administrative and Financial Services State Bureau: Maine Center for Disease Control & Prevention Health and Human Services Service Center Office of the State Controller Federal Agency: U.S. Department of Health and Human Services Assistance Listing Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (COVID-19) Assistance Listing Number: 93.323 Federal Award Identification Number: NU50CK000523 Compliance Area: Reporting Type of Finding: Material weakness Material noncompliance Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN). Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. At the close of the fiscal year, the Department and its Service Center reported Federal expenditures of $45 million under the ELC program to OSC; however, current year expenditures actually totaled $59 million. This information was then used by OSC to compile and prepare the SEFA. Subsequent OSC review procedures were not designed to detect and correct this error. As a result, ELC expenditures were incorrect on the State?s fiscal year 2022 SEFA when provided to the Office of the State Auditor for audit purposes. Context: The 2022 SEFA originally reported total expenditures under ELC totaling $45 million; however, this included $14 million of prior year ELC expenditures that were transferred out of current year SEFA totals to the Coronavirus Relief Fund, resulting in an understatement of fiscal year ELC expenditures. Cause: ? Lack of adequate internal control relating to SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Incomplete or inaccurate amounts by Federal program on the SEFA would result in noncompliance with Federal regulations if undetected. The SEFA is submitted to the Federal government and may be used for programmatic, policy or statistical purposes. Recommendation: We recommend that the Department work with its Service Center to implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA. Corrective Action Plan: See F-23 Management?s Response: DHHS and DHHS Financial Service Center Response: The DHHS and the DHHS Financial Service Center agree with this finding. The Financial Service Center will work with OSC to develop and implement additional procedures related to reporting of prior period adjustments beginning with the SEFA that is for the State Fiscal Year 2023, by December 31, 2023. DHHS Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, the Office of the State Auditor (OSA) recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-023, 2022-053, and 2022-092, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1156-02)
(2022-092) Title: Internal control over the submission and review of DG ? PA Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See Schedule of Findings and Questioned Costs for chart/table State Department: Defense, Veterans and Emergency Management Administrative and Financial Services State Bureau: Maine Emergency Management Agency Office of the State Controller Federal Agency: U.S. Department of Homeland Security Assistance Listing Title: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (COVID-19) Assistance Listing Number: 97.036 Federal Award Identification Number: 4354DRMEP00000001, 4367DRMEP00000001, 4522DRMEP00000001 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510; 2 CFR 200, Appendix XI, Assistance Listing Number 97.036; OMB M-20-26 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. To maximize the transparency and accountability of COVID-19 related award expenditures, OMB M-20-26 (June 18, 2020) instructed recipients and subrecipients to separately identify the COVID- 19 Emergency Acts expenditures on the SEFA. Therefore, non-federal entities should separately identify COVID-19 expenditures on the SEFA. For existing programs that have both COVID-19 expenditures and non-COVID-19 expenditures, this may be accomplished by identifying COVID- 19 expenditures on the SEFA on a separate line by Assistance Listing number with ?COVID-19? as a prefix to the program name. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding for the Disaster Grants ? Public Assistance (DG ? PA) program, which had both COVID-19 expenditures and non-COVID-19 expenditures during the fiscal year. At the close of the fiscal year, the Department provided a summary of Federal DG ? PA expenditures to OSC; however, the summary did not specifically identify COVID-19 related expenditures under this program. This summary was then used by OSC to compile and prepare the SEFA. Upon preparation, COVID-19 related expenditures were not identified as such in the SEFA. Subsequent OSC review procedures were not designed to detect and correct this error. As a result, DG ? PA COVID-19 related expenditures were not identified on the State?s fiscal year 2022 SEFA when provided to the Office of the State Auditor for audit purposes. Context: During fiscal year 2022, DG ? PA program expenditures totaled $80.2 million. Of that amount, $79.5 million were COVID-19 related expenditures. Cause: ? Lack of adequate internal control relating to Department SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA. Corrective Action Plan: See F-32 Management?s Response: MEMA Response: The Department agrees with this finding. MEMA will implement controls to ensure the accuracy of Assistance Listing Numbers before SEFA data is submitted to OSC. MEMA Contact: Joe Legee, Deputy Director, MEMA, DVEM, 207-624-4400 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, the Office of the State Auditor (OSA) recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-023, 2022-053, and 2022-064, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1502-01)
(2022-092) Title: Internal control over the submission and review of DG ? PA Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: See Schedule of Findings and Questioned Costs for chart/table State Department: Defense, Veterans and Emergency Management Administrative and Financial Services State Bureau: Maine Emergency Management Agency Office of the State Controller Federal Agency: U.S. Department of Homeland Security Assistance Listing Title: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (COVID-19) Assistance Listing Number: 97.036 Federal Award Identification Number: 4354DRMEP00000001, 4367DRMEP00000001, 4522DRMEP00000001 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510; 2 CFR 200, Appendix XI, Assistance Listing Number 97.036; OMB M-20-26 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State?s financial statements which must include the total Federal awards expended. To maximize the transparency and accountability of COVID-19 related award expenditures, OMB M-20-26 (June 18, 2020) instructed recipients and subrecipients to separately identify the COVID- 19 Emergency Acts expenditures on the SEFA. Therefore, non-federal entities should separately identify COVID-19 expenditures on the SEFA. For existing programs that have both COVID-19 expenditures and non-COVID-19 expenditures, this may be accomplished by identifying COVID- 19 expenditures on the SEFA on a separate line by Assistance Listing number with ?COVID-19? as a prefix to the program name. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State?s SEFA. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2022, the Department received funding for the Disaster Grants ? Public Assistance (DG ? PA) program, which had both COVID-19 expenditures and non-COVID-19 expenditures during the fiscal year. At the close of the fiscal year, the Department provided a summary of Federal DG ? PA expenditures to OSC; however, the summary did not specifically identify COVID-19 related expenditures under this program. This summary was then used by OSC to compile and prepare the SEFA. Upon preparation, COVID-19 related expenditures were not identified as such in the SEFA. Subsequent OSC review procedures were not designed to detect and correct this error. As a result, DG ? PA COVID-19 related expenditures were not identified on the State?s fiscal year 2022 SEFA when provided to the Office of the State Auditor for audit purposes. Context: During fiscal year 2022, DG ? PA program expenditures totaled $80.2 million. Of that amount, $79.5 million were COVID-19 related expenditures. Cause: ? Lack of adequate internal control relating to Department SEFA submissions to OSC ? Lack of adequate review procedures by OSC Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that the Department implement additional procedures to improve preparation and submission of SEFA information to OSC. We further recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. These control procedures will ensure that expenditures are reported accurately on the SEFA. Corrective Action Plan: See F-32 Management?s Response: MEMA Response: The Department agrees with this finding. MEMA will implement controls to ensure the accuracy of Assistance Listing Numbers before SEFA data is submitted to OSC. MEMA Contact: Joe Legee, Deputy Director, MEMA, DVEM, 207-624-4400 OSC Response: The Office of the State Controller partially agrees with this finding. Federal funds reporting is decentralized and agencies use different methods for tying amounts to specific federal programs in Advantage. The Management Representation letters received from the agencies acknowledge that the agencies are responsible for the fair presentation of the expenditures in conformity with and in compliance with the rules and regulations of 2 CFR ?200. OSC is responsible to compile the data and submit the SEFA. OSC will update or clarify guidance as necessary and will consult with service center and agency financial personnel to help ensure their compilation/review systems are designed to provide accurate information for the SEFA. OSC Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Auditor?s Concluding Remarks: In reply to OSC?s Management Response, the Office of the State Auditor (OSA) recognizes that SEFA reporting is a decentralized process and that OSC receives Management Representation Letters from agencies acknowledging responsibility for the fair presentation of SEFA information; however, OSC is responsible for reviewing the SEFA before it is provided to OSA for audit purposes. OSC has established review procedures prior to submission to OSA and that review and approval is documented on agencies? submissions. This review process, as stated in the finding, was not designed to detect and correct the errors noted in this finding, and findings 2022-023, 2022-053, and 2022-064, which are all related to agency submissions and OSC review of SEFA information. In addition, the Department of Administrative and Financial Services and OSC provide a signed Engagement Letter and Management Representation Letter to OSA, acknowledging the following responsibilities related to the annual Single Audit: ? Understanding and complying with the requirements of 2 CFR 200, including requirements relating to preparation of the SEFA ? Preparing and fairly presenting the SEFA and related disclosures in accordance with the requirements of the Uniform Guidance, including full identification of all government programs and related activities subject to the Federal compliance audit and all SEFA expenditures made during the audit period for all awards provided by Federal agencies OSA asserts that a year-to-year SEFA comparison would have detected the errors identified in the aforementioned findings; therefore, we continue to recommend that OSC implement additional supervisory review procedures over the SEFA information compiled on behalf of the State. This will provide assurance relating to the responsibility for SEFA information as outlined above and attested to OSA at the commencement and conclusion of the annual Single Audit. The finding remains as stated. (State Number: 22-1502-01)
2022-008 ? Completeness and accuracy of certain COVID-19 programs on the Prior Year Schedule of Expenditures of Federal Awards (SEFA) - (Significant Deficiency) Cluster: Not applicable Sponsoring Agency: Department of Health and Human Services (HHS) - Health Resources and Services Administration (HRSA) and Department of Education Award Names: COVID-19 Provider Relief Fund (PRF) and COVID-19 Higher Education Emergency Relief Fund (HEERF) Institutional Portion Award Numbers: Not applicable and P425F202269 Assistance Listing Titles: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution and COVID-19 HEERF Institutional Portion Assistance Listing Number: 93.498 and 84.425F Award Year: 2020-2021 and 2020-2022 Pass-through entity: Not applicable Criteria 2 CFR 200.510 Financial statements requires auditees to prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Condition The following errors were identified in the University?s 2021 SEFA: ? Management at the University Office of the President brought to our attention that in the prior year, the PRF Period 1 expenditures at 1 hospital that was part of a certain medical center with multiple portal submissions, was not included on the University?s SEFA. This error totaled $26,358,874 and represented 6% of total Period 1 PRF expenditures included on the SEFA and 0.4% of the University?s total SEFA. Exclusion of this amount did not impact the major program determination in 2021 or our scoping of the PRF major program across the University as a whole. Management has included this amount on the 2022 SEFA. ? Through our discussions with management at a second campus, we identified 2 additional PRF portal submissions were excluded from the 2021 SEFA, as follows: Period 1 $473,339 and Period 1 $11,962. These submissions have also been included in the 2022 SEFA. ? Through our current year testing at a third campus, we noted that the 2021 HEERF institutional funds expended per management?s analysis did not agree to the amount reported on the 2021 SEFA. The amount reported in the prior year was understated by $1,296,498. This amount was not material to HEERF or to the 2021 SEFA as a whole. This amount has also been included in the 2022 SEFA. Cause The COVID-19 pandemic resulted in the receipt and expenditure of federal funds across certain University medical centers where there has previously been limited to no federal funding and a different nature of funding at certain of the campuses. The preparation of the SEFA requires information from each campus be provided to the University Office of the President for compilation, and the aggregation of the COVID-19 PRF funding was manual. In addition, there was limited knowledge of the federal funding at the medical centers and thus a reliance on the part of management that each campus was reporting complete and accurate information. A final reconciliation of all portal submissions compared to the amounts on the SEFA also failed to detect the missing PRF expenditures at this one medical center. Additionally, regarding the HEERF missing amounts, the correct amount was communicated by the campus to the University Office of the President, however, this communication was overlooked by the preparer of the SEFA, since a manual adjustment was required. Effect A SEFA that is not complete and accurate could impact the scoping of an entity?s major programs and result in incomplete information being provided to the federal government. Questioned Costs None noted. Recommendation We recommend updates on atypical federal programs (e.g., HEERF and PRF) at each campus (including the medical centers) be periodically provided to the team at the University Office of the President that is responsible for the compilation of the SEFA. This will allow for a more comprehensive understanding of the campus grant activity for these programs and the ability to better review and assess the completeness and accuracy reported for these programs on the University?s year-end SEFA, inclusive of these programs. One means by which this might be accomplished is to develop a checklist of anticipated awards by campus in advance of the year and also complete an interim SEFA to identify inconsistencies earlier in the fiscal year. We recommend the campuses review the interim SEFA for completeness and accuracy and provide a formal sign-off/approval to the University Office of the President. We also recommend formal review of the final year-end SEFA be evidenced by the Systemwide Controller or other appropriate personnel. Management?s Views and Corrective Action Plan Management?s response is included in ?Management?s Views and Corrective Action Plan? included at the end of this report after the summary schedule of status of prior audit findings.
2022-008 ? Completeness and accuracy of certain COVID-19 programs on the Prior Year Schedule of Expenditures of Federal Awards (SEFA) - (Significant Deficiency) Cluster: Not applicable Sponsoring Agency: Department of Health and Human Services (HHS) - Health Resources and Services Administration (HRSA) and Department of Education Award Names: COVID-19 Provider Relief Fund (PRF) and COVID-19 Higher Education Emergency Relief Fund (HEERF) Institutional Portion Award Numbers: Not applicable and P425F202269 Assistance Listing Titles: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution and COVID-19 HEERF Institutional Portion Assistance Listing Number: 93.498 and 84.425F Award Year: 2020-2021 and 2020-2022 Pass-through entity: Not applicable Criteria 2 CFR 200.510 Financial statements requires auditees to prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Condition The following errors were identified in the University?s 2021 SEFA: ? Management at the University Office of the President brought to our attention that in the prior year, the PRF Period 1 expenditures at 1 hospital that was part of a certain medical center with multiple portal submissions, was not included on the University?s SEFA. This error totaled $26,358,874 and represented 6% of total Period 1 PRF expenditures included on the SEFA and 0.4% of the University?s total SEFA. Exclusion of this amount did not impact the major program determination in 2021 or our scoping of the PRF major program across the University as a whole. Management has included this amount on the 2022 SEFA. ? Through our discussions with management at a second campus, we identified 2 additional PRF portal submissions were excluded from the 2021 SEFA, as follows: Period 1 $473,339 and Period 1 $11,962. These submissions have also been included in the 2022 SEFA. ? Through our current year testing at a third campus, we noted that the 2021 HEERF institutional funds expended per management?s analysis did not agree to the amount reported on the 2021 SEFA. The amount reported in the prior year was understated by $1,296,498. This amount was not material to HEERF or to the 2021 SEFA as a whole. This amount has also been included in the 2022 SEFA. Cause The COVID-19 pandemic resulted in the receipt and expenditure of federal funds across certain University medical centers where there has previously been limited to no federal funding and a different nature of funding at certain of the campuses. The preparation of the SEFA requires information from each campus be provided to the University Office of the President for compilation, and the aggregation of the COVID-19 PRF funding was manual. In addition, there was limited knowledge of the federal funding at the medical centers and thus a reliance on the part of management that each campus was reporting complete and accurate information. A final reconciliation of all portal submissions compared to the amounts on the SEFA also failed to detect the missing PRF expenditures at this one medical center. Additionally, regarding the HEERF missing amounts, the correct amount was communicated by the campus to the University Office of the President, however, this communication was overlooked by the preparer of the SEFA, since a manual adjustment was required. Effect A SEFA that is not complete and accurate could impact the scoping of an entity?s major programs and result in incomplete information being provided to the federal government. Questioned Costs None noted. Recommendation We recommend updates on atypical federal programs (e.g., HEERF and PRF) at each campus (including the medical centers) be periodically provided to the team at the University Office of the President that is responsible for the compilation of the SEFA. This will allow for a more comprehensive understanding of the campus grant activity for these programs and the ability to better review and assess the completeness and accuracy reported for these programs on the University?s year-end SEFA, inclusive of these programs. One means by which this might be accomplished is to develop a checklist of anticipated awards by campus in advance of the year and also complete an interim SEFA to identify inconsistencies earlier in the fiscal year. We recommend the campuses review the interim SEFA for completeness and accuracy and provide a formal sign-off/approval to the University Office of the President. We also recommend formal review of the final year-end SEFA be evidenced by the Systemwide Controller or other appropriate personnel. Management?s Views and Corrective Action Plan Management?s response is included in ?Management?s Views and Corrective Action Plan? included at the end of this report after the summary schedule of status of prior audit findings.
Inaccurate SEFA and Internal Control over Compliance Finding Type: Material weakness in internal control over compliance and noncompliance with laws and regulations. Program(s) Impacted: 84.367 Title II, Part A Condition: The District did not record expenditures to the 2020-21 or 2021-22 grants in a timely manner, and internal controls over expenditures charged were not in place throughout the period during which such charges were incurred. Expenditures reported for the Title II, Part A grant in their submission to the Michigan Department of Education?s Financial Information Database (FID) did not agree with expenditures reported in the schedule of expenditures of Federal awards (SEFA) for the same period, as the District did not provide accurate information to the auditors nor did they prepare an accurate SEFA. Criteria: 2 CFR 200.510(b) requires that an auditee prepare a SEFA for the period covered by the financial statements which must include the total Federal awards expended for each program. In addition, 2 CFR 200.303 requires that an auditee establish and maintain effective internal control over the Federal award that provides reasonable assurance of compliance with Federal statutes, regulations, and the terms and conditions of the award. Cause: The District incurred expenditures throughout the fiscal year, however, did not determine Title II, Part A charges until prior to submission of the Final Expenditure Report for the grant, and did not inform their auditors of differences between federal revenue recognized and expenditure recorded during the same period. Effect: The District?s SEFA was not accurate for the fiscal year ending June 30, 2021, and adjustments were needed in the current year to correct Title II, Part A expenditures previously recorded. In addition, the FID submission to MDE reflected revenue recorded to Title II, Part A that did not agree with expenditures recorded to the associated grant code. Questioned Costs: $0 Recommendation: We recommend that the District record expenditures to federal grants throughout the fiscal year, as such expenditures are incurred, and prepare an accurate SEFA for auditor review. View of Responsible Officials: The District agrees with the recommendation and will implement internal controls to address the stated condition.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.
CFDA Number, Federal Agency, and Program Name ALN 84.425E and 84.425F, Department of Education, COVID 19 Education Stabilization Fund 84.047A, Department of Education, TRIO Cluster Upward Bound 84.425N, Great Start for Higher Education Federal Award Identification Number and Year P425E202505, P425F202028, P425M200851, P047A170893, P047A170894, P047A170895, H325N180008 20 Pass through Entity N/A for ALN 84.425E and 84.047A, which were direct funded ALN 84.425N was passed through the University of Toledo Finding Type Material weakness Repeat Finding No Criteria 2 CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedules easier to use. Condition The original schedule of expenditures of federal awards (SEFA) provided by the College was not complete and accurate. The audit team identified numerous errors throughout the course of our procedures which were brought to management's attention. Management made the appropriate corrections to adjust the SEFA to the appropriate balances and presentation. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The College accumulates the financial data and other required information to complete the SEFA. The original SEFA provided by the College to the audit team included several inaccuracies, including missing and/or incomplete expenditure amounts and incorrect presentation of pass through entities, award numbers, and award amounts. The SEFA most significantly included the following inaccuracies: $2,620,508 spent under ALN 84.425E (HEERF) was improperly excluded from the SEFA. Expenditures under ALN 84.425F (HEERF) were overstated by $149,844 for costs incurred outside the fiscal period under audit. Expenditures under ALN 84.047A (TRIO) were overstated by $304,924 for costs incurred outside the fiscal period under audit. $28,941 spent under ALN 84.425N (Great Start for Higher Education) was improperly excluded from the SEFA. Cause and Effect Controls and processes in place to prepare the SEFA did not ensure that the SEFA was complete and accurate. After follow ups with the audit team, all errors were corrected by management and all expenditure amounts and information were properly reported on the SEFA for the year ended June 30, 2022. Recommendation The College's process for preparing the SEFA should be adjusted to ensure that accounting records are closed timely, internal accounts are reconciled (i.e. the SEFA reconciles to federal revenue recorded), and appropriate workpapers are prepared to support the SEFA balances. In addition, client should review award numbers, award amounts, pass through entity information, and expenditure amounts for accuracy before providing the SEFA to the auditors. This process should include review by appropriate individuals, including the Director of Financial Aid, Director of Financial Services, and individuals involved in the administration of grants. Views of Responsible Officials and Corrective Action Plan A detailed business procedure will be written and implemented that expressly lists how to handle year end audit as it relates to both the Annual Financial Audit and the Single Audit. The procedure will include processes for quarterly balancing and review, at a minimum. The procedure will include the creation of the annual SEFA document to be used by auditors in determining what programs the College has been awarded and what expenditures have been made. It will also include who is to handle all pieces of the audit and preparation in the absence of the Director of Financial Services.