Reference Number 2025-004 Evaluation of Finding Material Weakness and Noncompliance: Incomplete Schedule of Expenditures of Federal Awards Condition The City failed to provide a complete schedule of expenditures of federal awards (SEFA) for the fiscal year, leading to inaccuracies pertaining to the ARPA program. This omission resulted in a direct impact on the determination of major programs. Criteria According to the Government Auditing Standards (Yellow Book) and the Uniform Guidance, 2 CFR Part 200, Subpart F—Audit Requirements, sections 200.508 and 200.510, entities receiving federal awards must prepare and submit a complete and accurate SEFA as part of their annual financial reporting. This schedule is crucial for auditors to determine major programs and conduct the necessary audits in compliance with federal regulations. Cause of Condition The incomplete SEFA was caused by a lack of oversight and insufficient internal controls within the City's financial management department. Effect or Potential Effect The failure to provide a complete SEFA has significant implications, including: • Inaccurate determination of major programs, which can affect the scope and quality of the audit process. • Increased risk of non-compliance with federal regulations, potentially leading to financial penalties and loss of federal funding. Recommendation To address this material weakness, the following actions are recommended: • Develop detailed procedures and timelines: Establish and enforce comprehensive procedures and timelines for the preparation and submission of the SEFA to ensure completeness and accuracy. • Enhance staffing and resources: Allocate adequate staffing and resources to the financial management department to support the accurate compilation and timely submission of the SEFA. • Provide comprehensive training: Offer training to financial management staff on the requirements and importance of the SEFA, including techniques for ensuring its accuracy and completeness.. • Regularly audit the SEFA preparation process: Conduct regular audits of the SEFA preparation process to ensure compliance with established policies and procedures and address any deficiencies promptly. This should be completed monthly and at a minimum quarterly. By implementing these recommendations, the City can strengthen its internal controls, improve the accuracy of its financial reporting, and ensure compliance with Government Auditing Standards and other regulatory requirements.
MATERIAL WEAKNESS; CRITERIA: Title 2 CFR §200.510(b) and the state single audit implementation act require auditees to prepare a Schedule of Expenditures of Federal and State Awards (SEFSA) for the period covered by the financial statements. 2 CFR §200.502(a) further emphasizes that the auditee is responsible for the accurate preparation and fair presentation of the SEFSA in accordance with federal requirements.; CONDITION: The Town of Spruce Pine did not prepare an accurate SEFSA for the fiscal year ended June 30, 2025. During the audit, we identified errors in reported federal expenditures, including the omission of federal program activity and incorrect amounts recorded as receivable under the federal program. As a result, material audit adjustments were required to properly state the SEFSA.; EFFECT: Because the SEFSA was not accurately prepared, there was an increased risk that federal expenditures were misstated and that federal programs subject to audit were not properly identified. This condition could result in noncompliance with federal reporting requirements and impair federal oversight. No questioned costs were identified as a result of this finding.; CAUSE: There were not adequate internal controls in place over the preparation and review of the SEFSA. Management did not maintain a complete and reconciled listing of federal awards expended during the fiscal year and did not perform a formal review of the SEFSA for completeness and accuracy prior to submission to the auditors. RECOMMENDATION: We recommend that the Town of Spruce Pine establish and document internal controls over the identification, tracking, and reporting of federal and state awards. This should include maintenance of a comprehensive schedule of known and potential awards throughout the fiscal year, reconciliation of grant expenditures to the general ledger, and performance of a supervisory review of the SEFSA prior to audit submission to ensure accuracy and completeness in accordance with federal and state requirements.; VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTIONS: The Town of Spruce Pine agrees with this finding. Finance procedures will be updated to include a suspension and debarment requirements. Town staff will be trained on the updated policies and its implementation.
Schedule of Findings and Responses Financial Statements June 30, 2025 Comment #2025-001 CONTROLS OVER FINANCIAL STATEMENT PREPARATION SHOULD BE IMPROVED GENERAL Condition: As part of our auditing procedures, we assisted management in the preparation of the financial statements and related disclosures of the Organization in accordance with generally accepted accounting principles (GAAP) and related notes to the financial statements and the schedule of expenditures of federal awards and other financial assistance (SEFA). While we noted that management made significant efforts and improvement in its staffing, there was still a need for adjustments proposed by management during the audit process for the Organization to properly state various asset, liabilities, revenue and expense accounts. The current accounting information system, the design and programming to produce financial statements on an interim and annual basis are not adequate. The system appears to be designed to only account for grant and contract expenditures for the overall Organization and not for each type of funding and function of the Organization (i.e., federal, state, local, etc.). Currently, the Organization relies on an outside consultant to maintain and report to the board of directors the interim and annual financial statements. We further understand that the Organization has formalized an accounting policies and procedures manual; however, it does not adequately address certain key financial areas (i.e. inventory management and financial reporting, the allocation of expenses in an equitable manner to the various grants and contracts, study of bad debt for the medicaid program, reconciliation of purchased meals to those delivered during each month, formal approval of journal entries, etc.). Accurate and timely reporting of the financial information by sources are critical to the Organization. Backup procedures are performed by the third party with no backup maintained on site. Management should be thoroughly familiar with the accounting system and have controls in place to limit access to the system. Backup files should be verified and maintained by the CEO. Cyber attacks are on the rise for small entities. It is also essential for the Organization to properly track each federal, state and local program separately in the reporting system and ensure that the methodology used to allocate common direct and indirect cost is fair and equitable and follow generally accepted accounting principles and best practices. The required matching of federal funds should be adequately calculated, recorded and reporting in accordance with the applicable contractual agreement (s). Context: Review of the internal control structure of the Organization in accordance with Government Auditing Standards. Criteria: Controls should be in place to ensure that financial statements are prepared in accordance with GAAP. The auditee shall prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. 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 Section 200.502, basis for determining federal awards expended. [2 CFR §200.510(a) and (b)] Effect: Management may not be able to obtain complete and accurate financial statements on an interim or fiscal year basis to be used for internal or external reporting purposes on a timely basis. Significant adjustments have to be made due to inaccurate programming and design. Whether the Organization is subject to a single audit pursuant to the Uniform Guidance is difficult to determine under the existing financial reporting model. (Continued) Cause: Significant turnover has been noted in key financial positions and a shortage of internal staff trained in accounting. An outside consultant with knowledge, skills, and experience in the preparation of financial statements was hired late into the fiscal year. The design of the accounting system (software utilized to process and maintain financial critical data in the general ledger and information system) is not adequate to report expenditures by source or funding type. Recommendation: The degree to which the auditors are assisting in preparation of the financial statements and related disclosures is a control deficiency and is determined by the knowledge and expertise of those in the Organization who are charged with the responsibility of its financial reporting. The accounting system should be designed to track and report revenue and expenditures by funding source and by type (federal, state, local, other, etc.). As a result, it is our recommendation that key personnel that have a role in assuring the accuracy of individual account balances obtain training to ensure that reporting, reconciliations (including cut-off procedures) and necessary supporting schedules are prepared accurately and in a timely manner. The general ledger should be maintained by departments (or by classes) to accurately report the revenue and expenditures in a manner consistent with that of the schedule of expenditures of federal awards (SEFA). The methodology used to allocated expenses should be studied to determine a more equitable means of allocating expenses (i.e. based on the number of units served for each program). Views of Responsible Officials and Planned Corrective Actions: We concur with this finding. The Organization has contracted with a seasoned outside accounting professional to assure that the financial system is designed to properly report financial activity by funding source and statements are completed and prepared timely. In addition, the Organization has committed to upgrading our accounting system software along with appropriate amendments to the formal accounting policy and procedures manual to cover the proper internal controls for accurately reporting financial activities for each grant and or contract. The Organization will maintain a backup copy of all financial data on-site. The software update process will be completed by June 30, 2026. The Organization is also engaged to have training on common software and cybersecurity awareness. Date to be implemented: On-going and completed by June 30, 2026. Persons responsible: CEO and financial consultant. Schedule of Findings and Responses Financial Statements June 30, 2025 Comment #2025-002 POLICIES AND PROCEDURES AND INTERNAL CONTROLS OVER DISBURSEMENTS AND PAYROLL PROCESSING SHOULD BE IMPROVED GENERAL Condition: We noted during our audit that the Organization’s purchasing policies and procedures and the internal controls over such procedures have not been updated to reflect the increase and diversity of funding and the compliance requirements that may affect the way the programs are carried out and accounted for. We also noted that the internal controls over the payroll processing should be improved. With the Organization receiving an increase in federal funding, management and the board of directors must be cognizant of the internal control requirements and the compliance requirement that are required when receiving such funds. The following are a summary of weaknesses and exceptions found during our audit procedures: 1. When meals are ordered for the various delivery sites, staff receives the meals each day with a corresponding ticket or voucher that identifies the type of meal and the quantities requested. The meals are purchased from one vendor. Each month, the vendor will submit an invoice for the meals delivered or sold to the Organization. We noted during our audit that there is no system in place to document the cumulative number of meals received each day and each month to authenticate the invoice (i.e., using Excel or some other accounting system). The risk exist that the number of meals invoiced may not agree with the number of meals received or delivered for the month and subsequently paid for. We also noted that there are no formal procedures in place to track and account for meals delivered by the various drivers and those not delivered (what happens to undelivered meals?). Consequently, the Organization is not able to adequately evaluate all accounts receivables by program and or properly record and value inventory at the end of each month (i.e. meals maintained in freezers). 2. The accounting for in-kind services and facilities are not properly evaluated and approved before entering into the general ledger as journal entries. Matching and in-kind are not reported by each grant as required by such grant agreements. 3. The payroll action forms are not always updated and used when there is a change in the pay rate (or salary amount) for employees. There were various reimbursements for miscellaneous expenses recorded in the payroll accounts ($10,722). Other payroll documents are either not in the file or not updated. The Organization’s has a 403 (b) Plan; however, it appears that this plan is not reviewed by the board of directors annually. Context: We reviewed and examined several transactions, based on our risk assessment and professional judgment, in each audit area for test of expenses to determine the Organization’s compliance with internal policies and procedures and other compliance requirements. Criteria: Generally accepted auditing standards and Governmental Auditing Standards. Internal controls should be designed to reduce the risk of transactions not being properly approved and executed in accordance with written policies and procedures that are approved by the board of directors. Such policies and procedures should be those determined to be best practices for not-for-profit organizations and are designed in a manner to meet the COSO framework. (Continued) Effect: Policies and procedures that are not properly designed and executed can result in the risk of assets not properly safe guarded and can lead to errors, misappropriation of assets and potentially abuse. Transactions not properly approved, could be an indirect violation of state and federal laws and other contractual requirements. Cause: Changes in senior management, the lost of staff due to the pandemic and lack of adequate monitoring activities. Also, the Organization has not established a committee or group of responsible individuals to oversee the polices and procedures and goals of the Organization. Recommendation: The Organization should immediately establish a committee of responsible individuals to author and oversee policies and procedures and internal controls over purchasing (procurement) and payroll processing procedures. Journal entries should be approved by a responsible person other than the person that initiated the journal entry. Supporting documentation should be attached to each journal entry that is not a recurring entry approved by the CEO. The 403 (b) Plan should be a regular agenda item for the board to discuss at least annually. Views of Responsible Officials and Planned Corrective Actions: We concur with this finding. The Organization will immediately assign a committee to take the lead in establishing policies and procedures and internal controls over the procurement process and the payroll procedures. The Organization has engaged a third party to help establish values of in-kind contributions. The board will discuss the 403 (b) Plan at least once annually reviewing the Plan document and the summary annual report. Date to be implemented: On-going and completed by June 30, 2026. Persons responsible: CEO and the board of directors with the outside consultant.
Submission of the Audit Reporting Package and Data Collection Form (Repeat of Finding 2024-007) Federal Agency: Various Assistance Listing Number: Multiple Compliance Requirement: Reporting Criteria: Per 2 CFR §200.510(b), the auditee must prepare a Schedule of Expenditures Federal Awards (SEFA) for the period covered by the auditee’s financial statements. Per §200.512(a), the SEFA must be submitted to the Federal Audit Clearinghouse (FAC) within the required deadline. Condition: The audit reporting package and data collection form for the year ended June 30, 2025, was not submitted to the FAC within the timeframe as required by the Uniform Guidance. Cause: The Organization did not timely submit the audit reporting package and data collection form due to delays in completing the FY25 audit. The delayed completion of the FY24 audit caused a cascading impact on the timing of the FY25 audit. Effect: To qualify as a low-risk auditee, 2 CFR section 200.520 requires the audit reporting package and data collection form to be submitted to the FAC by the due date for each of the previous two years. Late filing will result in noncompliance with timely submission of financial information to the grantor agencies. Recommendation: We recommend the Organization develop and monitor a formal audit timeline that accounts for the audit reporting package and data collection form submission deadlines to help ensure future filings are submitted in accordance with federal requirements. Questioned Costs: None Responsible Official's Response: CMJTS acknowledges the delay and has been making improvements to ensure that the Audit Reporting package and Data Collection Form are submitted timely and accurately. Accounting staff have been given additional training and internal procedures have been updated. Continued ongoing training and procedure updates will be done to ensure compliance.
2025-006 - Preparation of the Schedule of Expenditures of Federal Awards Finding Type: Material weakness in internal control over compliance. Criteria: The Uniform Guidance (2 CFR 200.302 and 2 CFR 200.510(b)) requires that non-Federal entities maintain records that adequately identify the source and application of Federal awards and prepare a Schedule of Expenditures of Federal Awards (SEFA) that is complete and accurate. Condition: The City did not prepare a Schedule of Expenditures of Federal Awards (SEFA) for the fiscal year ended June 30, 2025. A complete and accurate SEFA was prepared by the external auditor during the audit process. Cause: This condition is the result of the City’s lack of procedures and internal controls to identify, track, and report Federal award activity necessary to prepare the SEFA. Effect: As a result of this condition, the City did not maintain adequate internal control over compliance related to Federal reporting requirements and was not able to ensure that all Federal expenditures were identified and reported in accordance with Uniform Guidance. Recommendation: The City should implement procedures to identify and track Federal awards and expenditures and prepare a complete and accurate SEFA in accordance with Uniform Guidance requirements. Management Response: See Corrective Action Plan.
2025-001 16.575 Crime Victims Assistance Criteria: According to 2 CFR 200.510, the auditee is responsible for preparing a Schedule of Expenditures of Federal Awards (SEFA) that includes all federal awards received and expended, including the Assistance Listings Number (CFDA), grant numbers, and agency names. Condition: During the audit, management did not identify the total amount of federal funds received during the fiscal year. Context and Criteria: Entities that receive federal funds must have written policies, procedures, and standards of conduct (“policies”) as required by 2 CFR 200, Subparts D and E (2 CFR sections 200.300 and 200.400, respectively) for compliance with Uniform Guidance. Cause: Management did not include all grants with federal funding in their SEFA. Effect: The SEFA was inaccurate, leading to an incorrect determination that the Organization fell under the Single Audit requirement of $750,000. Recommendation: Management should review all grant agreements for Assistance Listing Numbers and pass-through identification information. Management should reconcile the SEFA to the general ledger periodically throughout the year. View of Responsible Officials and Planned Corrective Actions: Management will review the SEFA process and make changes as necessary.
Federal Program Information: Student Financial Assistance Cluster (ALN: Various), Child and Adult Care Food Program (ALN: 10.558), and Substance Abuse and Mental Health Services Projects (ALN: 93.342) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting - Per Uniform Guidance, §200.510(b), the auditees receiving federal funding are required to prepare a schedule of expenditures of Federal awards (the “Schedule”) for the period covered by the auditee's financial statements. 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. At a minimum, the Schedule should list individual Federal programs by Federal agency and provide total Federal awards expended for each Federal program during the entity’s fiscal year. Condition: During our audit procedures, we noted that the College did not prepare the Schedule for the year ended May 31, 2025. Cause: Insufficient internal controls and administrative oversight with respect to the timely preparation and review of the Schedule. Effect or Potential Effect: Lack of appropriate and timely preparation and review of the Schedule by management increases the risk that the amounts, contract or grant names, ALN information, and classification of the awards are presented incorrectly and that federal awards are not managed in accordance with Uniform Guidance. Questioned Costs: None. Context: The College did not prepare a Schedule for the year ended May 31, 2025. Additionally, management was unaware of certain federal awards received during the year. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the College implement additional internal controls and enhance their current policies and procedures to effectively maintain a detailed Schedule that contains the correct amounts, contract or grants names, ALN information and classification of the awards, which can be more readily reconciled to the underlying general ledger detail prior to receipt by the auditors. We also recommend that frequent cross departmental communication is established to ensure that all federal expenditures incurred and federal awards received during the year are appropriately reflected within the Schedule as required. The implementation of these internal controls will ensure that the Schedule is accurate/complete and also ensure that federal awards are managed appropriately in accordance with Uniform Guidance. Views of Responsible Officials: Management acknowledges the deficiency in the preparation and oversight of the Schedule of Expenditures of Federal Awards (SEFA) for the year ended May 31, 2025. To address this finding, the College will: • Implement a formal SEFA preparation policy aligned with 2 CFR §200.510(b) • Develop and maintain a centralized federal awards tracking log identifying: o Federal agency o Program name o Assistance Listing Number (ALN) o Award number o Pass-through entity (if applicable) o Expenditures by fiscal year • Establish quarterly reconciliations between the general ledger and the federal awards tracking log • Require structured cross-departmental communication between the Business Office, Financial Aid Office, Grants Administration, and program departments to ensure all federal awards received and expended are identified timely • Implement documented management review and approval of the SEFA prior to submission to auditors These corrective measures will strengthen internal controls over federal award tracking, improve the accuracy and completeness of the SEFA, and ensure compliance with Uniform Guidance requirements.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 Federal Award Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance - Reporting ALN and Name: 81.042 - Weatherization Assistance for Low Income Persons Federal Agency: Department of Energy (DOE), Passed through the Alaska Housing Finance Corporation Criteria Per 2 CFR 200.510(b) and Uniform Guidance, the auditee is required to prepare a Schedule of Expenditures of Federal Awards (SEFA) that is complete and accurate, and to provide information reconciling the SEFA to the financial statements and underlying accounting records. Auditors are required to obtain sufficient appropriate audit evidence regarding the completeness and accuracy of the SEFA and underlying population data. Condition During the audit, it was noted that the Organization did not perform reconciliation procedures between the population data used for federal program reporting of direct client expenditures and the financial accounting records. As a result, the audit team performed additional procedures to assess the completeness of the population and identified an unreconciled difference of $8,254 between the population and the trial balance. Cause The Organization did not have adequate procedures in place to ensure that the population data for federal program reporting was reconciled to the financial accounting records. Effect Due to the lack of reconciliation and the resulting unreconciled difference, the auditor was unable to obtain sufficient appropriate audit evidence regarding the completeness and accuracy of the population data for the federal program. This constitutes a scope limitation and may affect the auditor’s ability to express an unmodified opinion on compliance for the program. Questioned Costs $8,254. This amount represents the unreconciled difference between the population and the trial balance. Context The population data consisted of a listing of all clients (homes weatherized by the Organization, including readiness) with expenditures charged to the major program during the fiscal year being audited. The organization’s procedures did not include reconciling the population data used for federal program reporting to the financial accounting records. Such expenditures in the population data consisted of direct client costs which totaled $495,220 and reconciled direct expenditures reported on the Organization's trial balance totaled $503,474, resulting in an unreconciled difference of $8,254 between the population and the trial balance. This deficiency affects the reporting and internal control over compliance requirements for the program. The lack of reconciliation procedures increases the risk that errors or omissions in federal expenditures may not be detected or corrected in a timely manner, potentially impacting the completeness and accuracy of the SEFA. Recommendation We recommend that the Organization implement procedures to ensure that all population data used for federal program reporting is reconciled to the financial accounting records. This should include periodic reconciliations and documentation of any differences identified and resolved. Views of responsible officials and planned corrective actions Interior Weatherization, Inc. agrees with the finding and will implement monthly reconciliation procedures to ensure that direct client expenditures reconcile and adequately support the financial accounting records and reporting submitted to the grantor. See the corrective action plan.
Criteria: The District is required to have internal controls in place that enable it to prepare complete financial statements, including the schedule of expenditure of federal awards in accordance with generally accepted accounting standards and in accordance with the Uniform Guidance at 2 CFR 200.510(b). Condition: The District did not record federal grant income or expenses for the Water and Waste Disposal Systems for Rural Communities program. Cause: The District failed to have internal controls to properly record all federal grant activity and identify federal funds. Effect: The District did not record federal grant income or expenditures for the Water and Waste Disposal Systems for Rural Communities. The exclusion resulted in a material misstatement of contributed capital and construction in process. In addition, management engaged the auditor to prepare the schedule of expenditure of federal awards. Management reviewed, approved and accepted responsibility for the schedule of expenditure of federal awards prior to its issuance. Recommendation: We recommend that management review their procedures for identifying federal funds and review the costs and benefits involved to retain a consultant with the required expertise to prepare the schedule of expenditure of federal awards. Response: Management agrees with the finding and will review internal control procedures related to the recording of federal grant activity and cost to retain a consultant with the required expertise to prepare the schedule of expenditure of federal awards.
Criteria: The District is required to have internal controls in place that enable it to prepare complete financial statements, including the schedule of expenditure of federal awards in accordance with generally accepted accounting standards and in accordance with the Uniform Guidance at 2 CFR 200.510(b). Condition: The District did not record material federal grant income and expenses for the Coronavirus State and Local Fiscal Recovery Fund program in the correct period. Cause: The District failed to have internal controls to properly record all federal grant activity in the correct period and identify federal funds. Effect: The District did not record all federal grant income and expenses for the Coronavirus State and Local Fiscal Recovery Fund program in the correct period. The exclusion resulted in a material misstatement of contributed capital and construction in process. In addition, management engaged the auditor to prepare the schedule of expenditure of federal awards. Management reviewed, approved and accepted responsibility for the schedule of expenditure of federal awards prior to its issuance. Recommendation: We recommend that management review their procedures for identifying federal funds and recording federal funds in the proper period. In addition, we recommend that management review the costs and benefits involved to retain a consultant with the required expertise to prepare the schedule of expenditure of federal awards. Response: Management agrees with the finding and will review internal control procedures related to the recording of federal grant activity and cost to retain a consultant with the required expertise to prepare the schedule of expenditure of federal awards.
Preparation of and Internal Controls Over Monthly Invoicing and SEFA Preparation Significant deficiency Condition: As a result of our audit procedures and review of the SEFA, we proposed adjustments to the SEFA, which resulted in a material change in total expenditures of federal awards. Additionally, for two months, the Organization didn't update costs incurred to be billed to the federal government on their monthly invoicing. Criteria: 2 CFR Part 200 Cause: There was not an independent review of the SEFA by someone other than the preparer. Effect: Audit adjustments were required for the SEFA to be materially correct in accordance with 2 CFR Part 200.510(b). Recommendation: We recommend that prior to sending the SEFA to the auditors, management perform a detailed review of the SEFA, general ledger, and monthly invoicing spreadsheets for each federal program included on the SEFA, to ensure the reports are consistent and the SEFA is complete and accurate. If possible, this review should be completed by an individual who did not prepare the SEFA. View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.
Finding 2024-002 Schedule of Expenditures of Federal Awards (SEFA) Preparation (Significant Deficiency) Information on the Federal Programs: Research and Development Cluster. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Per 2 CFR § 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The SEFA must include total Federal awards expended, including Federal awards passed through from other entities, the name of the pass-through entity, and the identifying number assigned by the pass-through entity. Condition: During audit procedures, we identified a Federal pass-through award from under the Research and Development Cluster that was omitted from the preliminary SEFA. The expenditures associated with this award totaled approximately $72,000 for the fiscal year ended December 31, 2024. Cause: The omission resulted from inadequate internal controls over the collection and review of information used to prepare the SEFA. The client relied on a manual process to track Federal awards, and the pass-through award was not included in the final SEFA due to oversight. Effect or Potential Effect: The SEFA provided to auditors was incomplete and did not accurately represent the total Federal expenditures. This could lead to an understatement of total Federal expenditures and result in noncompliance with Uniform Guidance reporting requirements. Questioned Costs: N/A. Context: The SEFA initially provided by FASEB included 45 Federal awards with total expenditures of $1,248,060. The omitted pass-through award represented expenditures of $72,333, or approximately 6% of total Federal expenditures for the year. The omission appears to be isolated to this particular award; however, it was not detected by FASEB’s existing SEFA preparation and review process. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend FASEB enhance its internal control procedures over SEFA preparation to ensure all Federal awards, including those received through pass-through entities, are properly identified, tracked, and reported. This could include periodic reconciliations between the general ledger and award documentation and a formal review process prior to finalizing the SEFA.