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.
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.
Finding #2022-001 ? Timely Completion and Submission of Audit Under Uniform Guidance and Incomplete Schedule of Expenditures of Federal Awards (Material Weakness) Agreements: All Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards: ? #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the organization?s year-end. ? #200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with #200.510, Financial Statements. Condition and Context ? Requests required to complete the audit were not submitted within sufficient time to allow for audit and reporting prior to the deadline. The following errors and missing required elements were noted and corrected as a result of auditing procedures on the SEFA: ? Expenditures under agreement MHC-22-322B under CFDA 93.665 were not included. ? Expenditures under agreement CBH-22-1003A under CFDA 93.958 were not included. ? Expenditures under Period 4 of Provider Relief Funds (PRF) were included in error. ? There were two instances of COVID-19 programs that did not include the appropriate prefix. ? Subtotals were not included for the following CFDA numbers 93.958; 93.104; and 93.243. ? Expenditures under agreement CDM-21-4462A under CFDA 93.243 were shown included under CFDA 93.959 in error. Cause ? Loss of key management personnel that pulled time resources from key financial personnel. Insufficient internal controls over the preparation and review process for the SEFA. Effect ? The errors noted and above corrections would have led to the SEFA being materially misstated. The single audit report was not filed by the deadline. Recommendations ? Management should seek additional training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, reporting, and the trial balance. Any inconsistencies should be resolved before beginning the audit. The compliance supplement should be review for reporting guidance on new Federal programs. Questioned Costs ? None Management Response ? Management will seek additional training in preparation of the SEFA and the applicable standards.
Finding #2022-001 ? Timely Completion and Submission of Audit Under Uniform Guidance and Incomplete Schedule of Expenditures of Federal Awards (Material Weakness) Agreements: All Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards: ? #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the organization?s year-end. ? #200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with #200.510, Financial Statements. Condition and Context ? Requests required to complete the audit were not submitted within sufficient time to allow for audit and reporting prior to the deadline. The following errors and missing required elements were noted and corrected as a result of auditing procedures on the SEFA: ? Expenditures under agreement MHC-22-322B under CFDA 93.665 were not included. ? Expenditures under agreement CBH-22-1003A under CFDA 93.958 were not included. ? Expenditures under Period 4 of Provider Relief Funds (PRF) were included in error. ? There were two instances of COVID-19 programs that did not include the appropriate prefix. ? Subtotals were not included for the following CFDA numbers 93.958; 93.104; and 93.243. ? Expenditures under agreement CDM-21-4462A under CFDA 93.243 were shown included under CFDA 93.959 in error. Cause ? Loss of key management personnel that pulled time resources from key financial personnel. Insufficient internal controls over the preparation and review process for the SEFA. Effect ? The errors noted and above corrections would have led to the SEFA being materially misstated. The single audit report was not filed by the deadline. Recommendations ? Management should seek additional training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, reporting, and the trial balance. Any inconsistencies should be resolved before beginning the audit. The compliance supplement should be review for reporting guidance on new Federal programs. Questioned Costs ? None Management Response ? Management will seek additional training in preparation of the SEFA and the applicable standards.
Finding #2022-001 ? Timely Completion and Submission of Audit Under Uniform Guidance and Incomplete Schedule of Expenditures of Federal Awards (Material Weakness) Agreements: All Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards: ? #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the organization?s year-end. ? #200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with #200.510, Financial Statements. Condition and Context ? Requests required to complete the audit were not submitted within sufficient time to allow for audit and reporting prior to the deadline. The following errors and missing required elements were noted and corrected as a result of auditing procedures on the SEFA: ? Expenditures under agreement MHC-22-322B under CFDA 93.665 were not included. ? Expenditures under agreement CBH-22-1003A under CFDA 93.958 were not included. ? Expenditures under Period 4 of Provider Relief Funds (PRF) were included in error. ? There were two instances of COVID-19 programs that did not include the appropriate prefix. ? Subtotals were not included for the following CFDA numbers 93.958; 93.104; and 93.243. ? Expenditures under agreement CDM-21-4462A under CFDA 93.243 were shown included under CFDA 93.959 in error. Cause ? Loss of key management personnel that pulled time resources from key financial personnel. Insufficient internal controls over the preparation and review process for the SEFA. Effect ? The errors noted and above corrections would have led to the SEFA being materially misstated. The single audit report was not filed by the deadline. Recommendations ? Management should seek additional training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, reporting, and the trial balance. Any inconsistencies should be resolved before beginning the audit. The compliance supplement should be review for reporting guidance on new Federal programs. Questioned Costs ? None Management Response ? Management will seek additional training in preparation of the SEFA and the applicable standards.
Finding #2022-001 ? Timely Completion and Submission of Audit Under Uniform Guidance and Incomplete Schedule of Expenditures of Federal Awards (Material Weakness) Agreements: All Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards: ? #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the organization?s year-end. ? #200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with #200.510, Financial Statements. Condition and Context ? Requests required to complete the audit were not submitted within sufficient time to allow for audit and reporting prior to the deadline. The following errors and missing required elements were noted and corrected as a result of auditing procedures on the SEFA: ? Expenditures under agreement MHC-22-322B under CFDA 93.665 were not included. ? Expenditures under agreement CBH-22-1003A under CFDA 93.958 were not included. ? Expenditures under Period 4 of Provider Relief Funds (PRF) were included in error. ? There were two instances of COVID-19 programs that did not include the appropriate prefix. ? Subtotals were not included for the following CFDA numbers 93.958; 93.104; and 93.243. ? Expenditures under agreement CDM-21-4462A under CFDA 93.243 were shown included under CFDA 93.959 in error. Cause ? Loss of key management personnel that pulled time resources from key financial personnel. Insufficient internal controls over the preparation and review process for the SEFA. Effect ? The errors noted and above corrections would have led to the SEFA being materially misstated. The single audit report was not filed by the deadline. Recommendations ? Management should seek additional training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, reporting, and the trial balance. Any inconsistencies should be resolved before beginning the audit. The compliance supplement should be review for reporting guidance on new Federal programs. Questioned Costs ? None Management Response ? Management will seek additional training in preparation of the SEFA and the applicable standards.
Finding #2022-001 ? Timely Completion and Submission of Audit Under Uniform Guidance and Incomplete Schedule of Expenditures of Federal Awards (Material Weakness) Agreements: All Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards: ? #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the organization?s year-end. ? #200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with #200.510, Financial Statements. Condition and Context ? Requests required to complete the audit were not submitted within sufficient time to allow for audit and reporting prior to the deadline. The following errors and missing required elements were noted and corrected as a result of auditing procedures on the SEFA: ? Expenditures under agreement MHC-22-322B under CFDA 93.665 were not included. ? Expenditures under agreement CBH-22-1003A under CFDA 93.958 were not included. ? Expenditures under Period 4 of Provider Relief Funds (PRF) were included in error. ? There were two instances of COVID-19 programs that did not include the appropriate prefix. ? Subtotals were not included for the following CFDA numbers 93.958; 93.104; and 93.243. ? Expenditures under agreement CDM-21-4462A under CFDA 93.243 were shown included under CFDA 93.959 in error. Cause ? Loss of key management personnel that pulled time resources from key financial personnel. Insufficient internal controls over the preparation and review process for the SEFA. Effect ? The errors noted and above corrections would have led to the SEFA being materially misstated. The single audit report was not filed by the deadline. Recommendations ? Management should seek additional training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, reporting, and the trial balance. Any inconsistencies should be resolved before beginning the audit. The compliance supplement should be review for reporting guidance on new Federal programs. Questioned Costs ? None Management Response ? Management will seek additional training in preparation of the SEFA and the applicable standards.
Finding #2022-001 ? Timely Completion and Submission of Audit Under Uniform Guidance and Incomplete Schedule of Expenditures of Federal Awards (Material Weakness) Agreements: All Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards: ? #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the organization?s year-end. ? #200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with #200.510, Financial Statements. Condition and Context ? Requests required to complete the audit were not submitted within sufficient time to allow for audit and reporting prior to the deadline. The following errors and missing required elements were noted and corrected as a result of auditing procedures on the SEFA: ? Expenditures under agreement MHC-22-322B under CFDA 93.665 were not included. ? Expenditures under agreement CBH-22-1003A under CFDA 93.958 were not included. ? Expenditures under Period 4 of Provider Relief Funds (PRF) were included in error. ? There were two instances of COVID-19 programs that did not include the appropriate prefix. ? Subtotals were not included for the following CFDA numbers 93.958; 93.104; and 93.243. ? Expenditures under agreement CDM-21-4462A under CFDA 93.243 were shown included under CFDA 93.959 in error. Cause ? Loss of key management personnel that pulled time resources from key financial personnel. Insufficient internal controls over the preparation and review process for the SEFA. Effect ? The errors noted and above corrections would have led to the SEFA being materially misstated. The single audit report was not filed by the deadline. Recommendations ? Management should seek additional training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, reporting, and the trial balance. Any inconsistencies should be resolved before beginning the audit. The compliance supplement should be review for reporting guidance on new Federal programs. Questioned Costs ? None Management Response ? Management will seek additional training in preparation of the SEFA and the applicable standards.
Finding #2022-001 ? Timely Completion and Submission of Audit Under Uniform Guidance and Incomplete Schedule of Expenditures of Federal Awards (Material Weakness) Agreements: All Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards: ? #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the organization?s year-end. ? #200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with #200.510, Financial Statements. Condition and Context ? Requests required to complete the audit were not submitted within sufficient time to allow for audit and reporting prior to the deadline. The following errors and missing required elements were noted and corrected as a result of auditing procedures on the SEFA: ? Expenditures under agreement MHC-22-322B under CFDA 93.665 were not included. ? Expenditures under agreement CBH-22-1003A under CFDA 93.958 were not included. ? Expenditures under Period 4 of Provider Relief Funds (PRF) were included in error. ? There were two instances of COVID-19 programs that did not include the appropriate prefix. ? Subtotals were not included for the following CFDA numbers 93.958; 93.104; and 93.243. ? Expenditures under agreement CDM-21-4462A under CFDA 93.243 were shown included under CFDA 93.959 in error. Cause ? Loss of key management personnel that pulled time resources from key financial personnel. Insufficient internal controls over the preparation and review process for the SEFA. Effect ? The errors noted and above corrections would have led to the SEFA being materially misstated. The single audit report was not filed by the deadline. Recommendations ? Management should seek additional training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, reporting, and the trial balance. Any inconsistencies should be resolved before beginning the audit. The compliance supplement should be review for reporting guidance on new Federal programs. Questioned Costs ? None Management Response ? Management will seek additional training in preparation of the SEFA and the applicable standards.
Finding 2022-003 ? Significant Deficiency Assistance Listing: 93.591, Family Violence Prevention and Services/State Domestic Violence Coalitions Federal Grantor: U.S. Department of Health and Human Services Compliance Requirement: Other Condition: Expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.510(b) states, ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with ?200.502 Basis for determining Federal awards expended.? Internal controls over the SEFA should be in place to ensure accrual basis expenses incurred under federal programs are appropriately reported as expenses on the SEFA and are appropriately reported as revenue in the financial statements prior to the single audit. Cause: The Partnership failed to prepare its Audited Financial Statements and SEFA in a timely manner due to the loss of its key accounting staff near the single audit deadline and the time it took to hire a contract accounting firm to prepare for the financial statement and single audit. Also, some expenses reported on the SEFA was not reported in the general ledger grouping for ?funders? used to separate revenues and expenses for the federal grants and were instead reported in the grouping used for unallocated operating expenses. Effect: Adjustments were needed to properly report expenses on the SEFA and make the expenses agree to federal revenues in the financial statements. If expenses are not properly reported on the SEFA prior to the start of the single audit, the auditor could omit expenses for testing or select the wrong program for testing as a major program during the single audit, which would result in the Partnership?s single audit not complying with audit standards. Recommendation: The Partnership should work with its external accounting firm to ensure the SEFA is complete and accurate and expenses agree to federal revenues reported and ensure revenues and expenses for each federal grant are included in the appropriate grouping code for the grant so revenues and expenses claimed are accounted for separately in the general ledger. Management?s Response: Management?s response to the finding is discussed in the attached 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)
Finding 2022-001 Preparation of Schedule of Expenditures of Federal Awards Programs: U.S. Department of Agriculture -ALN: 10.760 Program Title: Water and Waste Disposal Systems for Rural Communities Criteria: The Schedule of Expenditures of Federal Awards is a supplemental schedule to the financial statements required to be produced when the entity is subject to a single audit. The single audit requirement is triggered when the federal expenditures reported on the Schedule of Expenditures of Federal Awards exceed $750,000 or more within an entity's fiscal year. Uniform Guidance 2 CFR ?200.510(b) states "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: For the fiscal year ended June 30, 2022, the City kept records of all expenditures and receipts of funding from drawdown requests together with support of payments and deposits of funds related to all federal expenditures but did not present those expenditures correctly or completely on a Schedule of Expenditure of Federal Awards as required by Uniform Guidance 2 CFR ?200.510(b). Effect: An accurate representation of total federal expenditures for the fiscal year is required to clearly identify federal expenditures for the audit period. The absence of a complete and accurate Schedule of Expenditures of Federal Awards for the audit period is noncompliant with the requirements set forth under Uniform Guidance 2 CFR ?200.510(b) but does not constitute a significant deficiency or material weakness in internal control over compliance. Questioned Costs: None reported. Recommendation: The City should implement a policy requiring entry of any federal expenditures to the Schedule of Expenditures of Federal Awards as part of the drawdown or pay request processes when submitting expenditures to the Federal Agency or Pass-through Entity providing funding. The procedures should be followed consistently to ensure that federal funds are appropriately accounted for and clearly identifiable for the period in which they occurred. The City of Cave Spring will refer to the compliance requirements of Title 2 U.S. Code of Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, and ensure the City meets the minimum Schedule of Expenditures of Federal Awards requirements as described in 2 CFR ?200.510(b).
2022-008 Inadequate Schedule of Federal Expenditures Reporting Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing No. 84.063, 84.268 Federal Award Identification Number and Year: P063P218567-2022, P268K228567-2022 Award Periods: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: CFR ?200.510(b) of the Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee?s financial statements which must include the total federal awards expended as determined in accordance with ?200.502 of the Uniform Guidance, ?Basis for Determining Federal Awards Expended. Condition: Though the College provided a Schedule of Federal Expenditures, the College did not have the controls in place to provide a Schedule of Federal Expenditures timely. Questioned Costs: None Context: The College did not have the controls in place to provide a Schedule of Federal Expenditures in a timely manner. Cause: The College did not have the appropriate resources and staffing in place to verify they were in compliance with all requirements. Effect: An incorrect Schedule of Federal Expenditures can delay an audit beyond the reporting deadline and cause unnecessary audit costs. Also, the delay could cause the College not to be in compliance with the DCF submission. Repeat findings: 2021-011 Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
2022-008 Inadequate Schedule of Federal Expenditures Reporting Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing No. 84.063, 84.268 Federal Award Identification Number and Year: P063P218567-2022, P268K228567-2022 Award Periods: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: CFR ?200.510(b) of the Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee?s financial statements which must include the total federal awards expended as determined in accordance with ?200.502 of the Uniform Guidance, ?Basis for Determining Federal Awards Expended. Condition: Though the College provided a Schedule of Federal Expenditures, the College did not have the controls in place to provide a Schedule of Federal Expenditures timely. Questioned Costs: None Context: The College did not have the controls in place to provide a Schedule of Federal Expenditures in a timely manner. Cause: The College did not have the appropriate resources and staffing in place to verify they were in compliance with all requirements. Effect: An incorrect Schedule of Federal Expenditures can delay an audit beyond the reporting deadline and cause unnecessary audit costs. Also, the delay could cause the College not to be in compliance with the DCF submission. Repeat findings: 2021-011 Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-003 - Preparation of the SEFA Information on the Federal Program: All Federal programs Criteria or Specific Requirement: Title 2 CFR 200.508 ?Auditee Responsibilities? indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 ?Financial statements?). Title 2 CFR 200 Section 200.510 ?Financial Statements? requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non-Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Aquarium did not appropriately identify and track its Federal expenditures incurred under direct and pass-through Federal awards during the year under audit. Cause: The Aquarium did not maintain appropriate internal controls to correctly identify and track awards provided from the federal government, including those received through pass through entities. Effect or Potential Effect: The Aquarium incurred expenditures in excess of the $750,000 threshold, requiring a Uniform Guidance compliance examination. Questioned Costs: None noted. Context: The SEFA must be prepared by the auditee (as described in ?Criteria? above). Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: We recommend that the Aquarium establish internal controls to correctly identify and track all Federal awards received either directly or indirectly. The expenditures incurred under direct and pass-through awards should be evaluated in aggregate periodically throughout the year (and at year-end) to determine if the Aquarium has reached the Uniform Guidance threshold. The Aquarium should ensure that the Uniform Guidance audit is completed, and the complete reporting package submitted to the Federal Audit Clearinghouse in advance of the reporting deadlines.
Finding 2022-003 - Preparation of the SEFA Information on the Federal Program: All Federal programs Criteria or Specific Requirement: Title 2 CFR 200.508 ?Auditee Responsibilities? indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 ?Financial statements?). Title 2 CFR 200 Section 200.510 ?Financial Statements? requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non-Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Aquarium did not appropriately identify and track its Federal expenditures incurred under direct and pass-through Federal awards during the year under audit. Cause: The Aquarium did not maintain appropriate internal controls to correctly identify and track awards provided from the federal government, including those received through pass through entities. Effect or Potential Effect: The Aquarium incurred expenditures in excess of the $750,000 threshold, requiring a Uniform Guidance compliance examination. Questioned Costs: None noted. Context: The SEFA must be prepared by the auditee (as described in ?Criteria? above). Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: We recommend that the Aquarium establish internal controls to correctly identify and track all Federal awards received either directly or indirectly. The expenditures incurred under direct and pass-through awards should be evaluated in aggregate periodically throughout the year (and at year-end) to determine if the Aquarium has reached the Uniform Guidance threshold. The Aquarium should ensure that the Uniform Guidance audit is completed, and the complete reporting package submitted to the Federal Audit Clearinghouse in advance of the reporting deadlines.
Finding 2022-003 - Preparation of the SEFA Information on the Federal Program: All Federal programs Criteria or Specific Requirement: Title 2 CFR 200.508 ?Auditee Responsibilities? indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 ?Financial statements?). Title 2 CFR 200 Section 200.510 ?Financial Statements? requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non-Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Aquarium did not appropriately identify and track its Federal expenditures incurred under direct and pass-through Federal awards during the year under audit. Cause: The Aquarium did not maintain appropriate internal controls to correctly identify and track awards provided from the federal government, including those received through pass through entities. Effect or Potential Effect: The Aquarium incurred expenditures in excess of the $750,000 threshold, requiring a Uniform Guidance compliance examination. Questioned Costs: None noted. Context: The SEFA must be prepared by the auditee (as described in ?Criteria? above). Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: We recommend that the Aquarium establish internal controls to correctly identify and track all Federal awards received either directly or indirectly. The expenditures incurred under direct and pass-through awards should be evaluated in aggregate periodically throughout the year (and at year-end) to determine if the Aquarium has reached the Uniform Guidance threshold. The Aquarium should ensure that the Uniform Guidance audit is completed, and the complete reporting package submitted to the Federal Audit Clearinghouse in advance of the reporting deadlines.
Finding 2022-003 - Preparation of the SEFA Information on the Federal Program: All Federal programs Criteria or Specific Requirement: Title 2 CFR 200.508 ?Auditee Responsibilities? indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 ?Financial statements?). Title 2 CFR 200 Section 200.510 ?Financial Statements? requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non-Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Aquarium did not appropriately identify and track its Federal expenditures incurred under direct and pass-through Federal awards during the year under audit. Cause: The Aquarium did not maintain appropriate internal controls to correctly identify and track awards provided from the federal government, including those received through pass through entities. Effect or Potential Effect: The Aquarium incurred expenditures in excess of the $750,000 threshold, requiring a Uniform Guidance compliance examination. Questioned Costs: None noted. Context: The SEFA must be prepared by the auditee (as described in ?Criteria? above). Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: We recommend that the Aquarium establish internal controls to correctly identify and track all Federal awards received either directly or indirectly. The expenditures incurred under direct and pass-through awards should be evaluated in aggregate periodically throughout the year (and at year-end) to determine if the Aquarium has reached the Uniform Guidance threshold. The Aquarium should ensure that the Uniform Guidance audit is completed, and the complete reporting package submitted to the Federal Audit Clearinghouse in advance of the reporting deadlines.
Finding 2022-003 - Preparation of the SEFA Information on the Federal Program: All Federal programs Criteria or Specific Requirement: Title 2 CFR 200.508 ?Auditee Responsibilities? indicates that the auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (as specifically defined under 2 CFR 200.510 ?Financial statements?). Title 2 CFR 200 Section 200.510 ?Financial Statements? requires recipients of Federal funds to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements which must include the total Federal awards expended. Additionally, in accordance with CFR 200.303, the non-Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Aquarium did not appropriately identify and track its Federal expenditures incurred under direct and pass-through Federal awards during the year under audit. Cause: The Aquarium did not maintain appropriate internal controls to correctly identify and track awards provided from the federal government, including those received through pass through entities. Effect or Potential Effect: The Aquarium incurred expenditures in excess of the $750,000 threshold, requiring a Uniform Guidance compliance examination. Questioned Costs: None noted. Context: The SEFA must be prepared by the auditee (as described in ?Criteria? above). Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: We recommend that the Aquarium establish internal controls to correctly identify and track all Federal awards received either directly or indirectly. The expenditures incurred under direct and pass-through awards should be evaluated in aggregate periodically throughout the year (and at year-end) to determine if the Aquarium has reached the Uniform Guidance threshold. The Aquarium should ensure that the Uniform Guidance audit is completed, and the complete reporting package submitted to the Federal Audit Clearinghouse in advance of the reporting deadlines.
Program - Various, including AL 97.036 ? Disaster Grants - Public Assistance (Presidentially Declared Disasters); AL 10.923 ? Emergency Watershed Protection Program; and AL 93.563 ? Child Support Enforcement - Reporting Grant Number & Year - Various Federal Grantor Agency -Various, including U.S. Department of Homeland Security; U.S. Department of Agriculture; and U.S. Department of Health and Human Services Pass-Through Entity -Various, including Nebraska Military Department and Nebraska Department of Health and Human Services Criteria - Title 2 CFR ? 200.510(b) (January 1, 2022) states, in part, the following: The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502. Title 2 CFR ? 200.303 (January 1, 2022) states the following, in relevant part: 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. These internal controls should be in compliance with guidance in ``Standards for Internal Control in the Federal Government?? issued by the Comptroller General of the United States or the ``Internal Control Integrated Framework??, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures of Federal Awards (SEFA) is properly presented and includes all Federal expenditures made by the County during the fiscal year. Condition - Colfax County does not have adequate procedures in place to ensure the Schedule of Expenditures of Federal Awards (SEFA) is completed accurately, and includes all Federal expenditures paid by the County. Specifically, we noted that expenditures of $27,831 for Assistance Listing # 10.923 were omitted from the County's fiscal year ending June 30, 2021, SEFA. This was not considered a material error, and it would not have impacted major program determination for the fiscal year 2021 audit. Repeat Finding - No Questioned Costs - None Statistical Sample - No Cause - Administration of Federal awards is decentralized with each County office operating independently without any centralized reporting procedures in place to ensure all Federal expenditures of the County are accurately reported on the SEFA. Additionally, there is an overall lack of knowledge by County personnel related to Federal reporting and compliance requirements. Effect -Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or failure to audit programs that should be audited. Recommendation -We recommend the County establish written procedures to ensure the SEFA is complete and accurate. Such procedures may include, among other things, a requirement that all offices in the County responsible for administering a Federal grant report their grant expenditures, and related information, to a single individual in the County with overall responsibility for Federal reporting requirements. That individual should be knowledgeable of Federal reporting and compliance requirements, and review expenditures provided by each office to ensure all amounts are accurate and include all Federal expenditures of the County. View of Officials -The County will develop a Schedule of Expenditures of Federal Awards (SEFA) chart and designate the County Clerk to coordinate the collection of information from individual county offices on Federal awards expenditures.
CFDA Number, Federal Agency, and Program Name - 84.425J - U.S. Department of Education, Education Stabilization Fund - Higher Education Emergency Relief Fund Federal Award Identification Number and Year - 2022 - 84.425 J Finding Type - Material weakness Repeat Finding - No Criteria -Per 2 CFR 200.510(b), the College must prepare a schedule of federal expenditures (SEFA) for the period covered by the auditee's financial statements which must include the total federal awards expended as as determined in accordance with section 200.502. Condition - The SEFA was not complete or accurate. Questioned Costs - none Identification of How Questioned Costs Were Computed - N/A Context - As described in financial statement finding 2022-001, during fiscal year June 20, 2022, approximately $9.3 million of lost revenue was incorrectly recorded as revenue in fiscal year 2022. In addition, the College initially also incorrectly included the $9.3 million in lost revenue on the fiscal year 2022 SEFA. This lost revenue was incurred in fiscal year June 30, 2021 and has been excluded from the final June 30, 2022 SEFA. Recommendation -The College should implement a procedure to ensure the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - Management has accepted the finding. Moving forward, internal controls will be strengthened with regard to review and recording of revenue and expense recognition. Specifically, as it relates to this instance, review of documentation from the U.S. Department of Education (DOE) as it relates to HEERF grant funding will be more closely reviewed for understanding to include verification of understanding, guidelines and procedures from the DOE and other pertinent agencies for grant funding.
Finding 2022-002 U.S. DEPARTMENT OF EDUCATION 84.358A RURAL EDUCATION GRANT Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Finding 2022-002 Condition : The Schedule of Expenditures of Federal Awards (SEFA) was materially understated by $33,592. Cause : This was the School's first single audit and the first time for the School's accountant to prepare the SEFA. The School does not have a process in place for School Administrative personnel who are familiar with the School's grants to review the SEFA for accuracy and completeness. Effect : An audit adjustment was made to increase the reported amount on the SEFA for the Rural Education Grant (84.358A) by $38,256 and reduce the reported amount on the SEFA for the Special Education Grants (84.027) by $8,288. The increase in expenditures resulted in the need to select a second federal award for testing. Recommendation : We recommend that the School's accountant work with administrative personnel to identify all awards from federal sources and implement a process whereby School administrative personnel review the SEFA prepared by the accountant. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. View of responsible officials : See attached corrective action plan.
Finding 2022-012: SEFA reporting Repeat Finding Yes (2021-011) Federal Program Title: U.S. Department of Justice Passed through Illinois Criminal Justice Information Authority 16.575; Crime Victim Assistance Award Year Award# 219040: March 23, 2021 ? May 31, 2022 Award# 220040: June 1, 2022 ? November 30, 2023 Criteria: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Condition: On the original SEFA provided for our audit, the total federal expenditures reflected on the SEFA was shown in the amount significantly higher than actual federal expenditures incurred for the year resulting in restatement of the SEFA. Cause: Due to staff turnover, staff was unfamiliar with the specifics of the grant. Effect: SEFA was overstated. Questioned costs: None Context: On the original SEFA provided to us for our audit, the total federal expenditures reflected on the SEFA were shown in the amount of $1,962,974. As a result of the audit the total reported on the schedule of federal expenditures was decreased down to $1,698,013. The largest impact to this decrease related to the major program, which accounted for $245,275 of the decrease, with the remaining programs having significantly lesser impact. Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Views of responsible officials: Management agrees with this finding. Please see corrective action plan attached.
MATERIAL WEAKNESSES Finding 2022-001 Criteria: According to- 2 CFR 200.508(a) The auditee must prepare appropriate financial statements, including the schedule of expenditures of Federal awards (SEFA) in accordance with 2 CFR 200.510. As instructed in the OMB Compliance Supplement, Provider Relief Funds (PRF) should be reported on the SEFA based upon the PRF report that is required to be submitted to the HRSA reporting portal. For example, PRF funds received in period 2 (July 1, 2020 to December 31, 2020) should be reported on the SEFA for fiscal year ends of December 31, 2021 through December 31, 2022. Condition: Federal awards totaling $332,841, including Provider Relief Funds received in period 2 of $178,159, were excluded from the SEFA. Cause: Crossroads had significant turnover within the accounting department and the new personnel had not been aware of the PRF funds received in a prior fiscal year. In addition, there was no overlap in the CFO position to provide for a smooth transition. Effect: An audit adjustment was made to report the three awards on the SEFA totaling $332,841. Recommendation: We recommend that Crossroads retain documentation regarding the information used to prepare the SEFA, along with notes for future years to assist with future personnel transitions. View of responsible officials: See attached corrective action plan.
MATERIAL WEAKNESSES Finding 2022-001 Criteria: According to- 2 CFR 200.508(a) The auditee must prepare appropriate financial statements, including the schedule of expenditures of Federal awards (SEFA) in accordance with 2 CFR 200.510. As instructed in the OMB Compliance Supplement, Provider Relief Funds (PRF) should be reported on the SEFA based upon the PRF report that is required to be submitted to the HRSA reporting portal. For example, PRF funds received in period 2 (July 1, 2020 to December 31, 2020) should be reported on the SEFA for fiscal year ends of December 31, 2021 through December 31, 2022. Condition: Federal awards totaling $332,841, including Provider Relief Funds received in period 2 of $178,159, were excluded from the SEFA. Cause: Crossroads had significant turnover within the accounting department and the new personnel had not been aware of the PRF funds received in a prior fiscal year. In addition, there was no overlap in the CFO position to provide for a smooth transition. Effect: An audit adjustment was made to report the three awards on the SEFA totaling $332,841. Recommendation: We recommend that Crossroads retain documentation regarding the information used to prepare the SEFA, along with notes for future years to assist with future personnel transitions. View of responsible officials: See attached corrective action plan.
MATERIAL WEAKNESSES Finding 2022-001 Criteria: According to- 2 CFR 200.508(a) The auditee must prepare appropriate financial statements, including the schedule of expenditures of Federal awards (SEFA) in accordance with 2 CFR 200.510. As instructed in the OMB Compliance Supplement, Provider Relief Funds (PRF) should be reported on the SEFA based upon the PRF report that is required to be submitted to the HRSA reporting portal. For example, PRF funds received in period 2 (July 1, 2020 to December 31, 2020) should be reported on the SEFA for fiscal year ends of December 31, 2021 through December 31, 2022. Condition: Federal awards totaling $332,841, including Provider Relief Funds received in period 2 of $178,159, were excluded from the SEFA. Cause: Crossroads had significant turnover within the accounting department and the new personnel had not been aware of the PRF funds received in a prior fiscal year. In addition, there was no overlap in the CFO position to provide for a smooth transition. Effect: An audit adjustment was made to report the three awards on the SEFA totaling $332,841. Recommendation: We recommend that Crossroads retain documentation regarding the information used to prepare the SEFA, along with notes for future years to assist with future personnel transitions. View of responsible officials: See attached corrective action plan.
Criteria: The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502.? Condition: The total federal expenditures initially reported in the SEFA totaled $1,614,338. However, further examination determined an additional major program with $1,321,287 in federal funds from another federal pass-through grant should have been reported within the SEFA, increasing the SEFA in total. Cause: The School?s controls did not operate as designed to ensure the proper preparation and review of the SEFA included all direct and pass-through awards. Effect or potential effect: The SEFA was not fairly presented, in all material respects, in relation to the basic statements taken as a whole. Questioned costs: None Context: This is a condition identified based upon our review of the School?s compliance with specified requirements. The prevalence of this finding is detailed in the condition section above. Repeat finding: This is a repeat finding Recommendation: We recommend that the School review its policies and procedures to ensure that federal expenditures are correctly reported on the SEFA by ensuring program personnel review the SEFA awards for completeness prior to release to the auditors. View of responsible officials: The Organization?s management agrees with the finding and recommendation. Management of the Organization has developed a corrective action plan to address this finding.
Criteria: The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502.? Condition: The total federal expenditures initially reported in the SEFA totaled $1,614,338. However, further examination determined an additional major program with $1,321,287 in federal funds from another federal pass-through grant should have been reported within the SEFA, increasing the SEFA in total. Cause: The School?s controls did not operate as designed to ensure the proper preparation and review of the SEFA included all direct and pass-through awards. Effect or potential effect: The SEFA was not fairly presented, in all material respects, in relation to the basic statements taken as a whole. Questioned costs: None Context: This is a condition identified based upon our review of the School?s compliance with specified requirements. The prevalence of this finding is detailed in the condition section above. Repeat finding: This is a repeat finding Recommendation: We recommend that the School review its policies and procedures to ensure that federal expenditures are correctly reported on the SEFA by ensuring program personnel review the SEFA awards for completeness prior to release to the auditors. View of responsible officials: The Organization?s management agrees with the finding and recommendation. Management of the Organization has developed a corrective action plan to address this finding.
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with ? 200.502. 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. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with ? 200.502. 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. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.
Assistance Listing Number, Federal Agency, and Program Name - 84.425F, 84.425M, 84.425N; U.S. Department of Education; Education Stabilization Fund (ESF) - HEERF Institutional Portion, HEERF Strengthening Institutions Program (SIP), HEERF Fund for Improvement of Postsecondary Education (FIPSE) Formula Grant. Federal Award Identification Number and Year - P425F204736, P425M201046-20A , P425N200748 Pass-through Entity - N/A Finding Type - Material weakness Repeat Finding - Yes 2021-005 Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with ? 200.502. 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. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2022, the Corporation expended approximately $15.7 million of federal funding. The funding was received from several federal and nonfederal entities. The Corporation accumulates the financial data and other required information to complete the SEFA. The SEFA improperly excluded $387,635 of expenditures under programs ALN 84.425F, 84.425M, and 84.425N. The addition of the $387,635 of expenditures caused the ALN 84.425 Education Stabilization Fund to require testing as a major program Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate. The effect of the lack of controls is detailed in the context section above. Additionally, the lack of controls resulted in an additional major program the year ended June 30, 2022. The error noted above have been corrected on the SEFA as of June 30, 2022. Recommendation - The Corporation should implement a process to ensure that the SEFA is prepared is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and additional training for those individuals responsible for grant accounting has and will continue to be conducted as well as incorporating additional levels of review to ensure the SEFA is completed accurately and timely.
FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS Finding Number: 2022-001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Crime Victim Assistance 16.575 2018-V2-GX-0012 N/A Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services 93.671 ADHS17-185594 N/A Federal Agency: U.S. Department of Justice/U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Public Safety/Arizona Department of Health Services Questioned Costs: N/A Type of Finding: Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles CRITERIA Uniform Guidance (CFR 200.510(b)) requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with laws, regulations and program requirements. The Organization must ensure expenses reported on the Schedule of Expenditures of Federal Awards is properly supported. CONDITION The Organization lacked sufficient internal controls over tracking expenses for its federal grants. CAUSE Turnover in key accounting positions led to an inconsistent methodology of classifying expenses throughout the year. EFFECT Amounts reported on the Schedule of Expenditures of Federal Awards were not fully supported by the financial reporting software. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. Federal expenses reported in the financial reporting software did not agree with amounts on the Schedule of Expenditures of Federal Awards. The amounts reported on the Schedule of Expenditures of Federal Awards are total reimbursements received. RECOMMENDATION The Organization should ensure policies and procedures for tracking federal grant expenses are accurate. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 200.510 (b), the State is required to prepare a SEFA for the period covered by the State's financial statements and the SEFA must include the total federal awards expended. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 Questioned Costs: None COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.