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.
Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.
Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.
Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.
Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.
Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.
Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.
Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.
Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Criteria: Per 2 CFR § 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be complete and accurate and include the total federal awards expended, the Assistance Listing Numbers (ALNs), the name of the federal agency, and any amounts provided to subrecipients. Condition: The SEFA was not prepared as prescribed by 2CFR Part 200.510(b) of the Uniform Guidance. The Parish did not have adequate internal controls in place to ensure the accurate and complete preparation of the SEFA. Specifically, the federal expenditure data provided for audit omitted multiple federal awards, contained inaccuracies in reported expenditures for multiple programs, did not allocate the federal and local cost share accurately, and amounts reported did not adequately trace back to the Parish’s financial reporting system. Cause: The deficiencies were caused by a lack of updated formal policies and procedures for gathering and reconciling federal expenditures across departments. Additionally, there was insufficient review by management to ensure the completeness and accuracy of the SEFA. The Parish experienced turnover in several departments, including the finance director/chief financial officer position in 2024. During the time of the transition, there were various accounting issues identified that required a significant amount of time and resources to address. Parish administration and management were immediately tasked with enhancing operations related to procedural concerns from the prior administration and performing the accounting function without sufficient documentation on several balances and transactions. Effect: As a result, the Parish provided incomplete and inaccurate data when preparing the SEFA which resulted in the Parish excluding federal awards and misstating expenditures and being noncompliant with federal reporting requirements. These errors required material adjustments to be made during the audit process, increasing the risk of misreporting to oversight agencies. Recommendation: We recommend that the Parish enhance policies and procedures over financial reporting and preparation of the SEFA so that duties are well defined, and responsibilities are properly outlined to assist periods of transition or turnover of key employees, as well as identifying and correcting errors on a more frequent basis through a monthly reconciliation process for all material and/or significant account balances. Additionally, we recommend that all journal entries proposed are reviewed and approved by the chief financial officer or designee.
Finding 2024-003: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Department of Health and Human Services; Health Resources and Services Administration. Federal Program: Maternal and Child Health Federal Consolidated Programs. Assistance Listing Number: ALN 93.110 Pass-through Entity: Not applicable. Award Identification Number and Year: UJ6MC45789-02-02 and 2024. Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Title 2 CFR 200 Section 200.510 “Financial Statements” requires recipients of Federal funds to prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Condition: AcademyHealth experienced difficulty in preparing and ensuring that all Federal expenditures were identified, categorized and included in the Schedule of Federal Awards. Cause: Internal controls were not in place to ensure an accurate preparation of the SEFA. Context: The Schedule of Expenditures of Federal Awards (SEFA) was not accurately completed at year-end and we received multiple versions of the SEFA during our audit process. Effect or Potential Effect: The Schedule of Expenditures of Federal Awards prepared at year-end had instances of budgeted expenditures and missing Federal grants. Questioned Costs: There were no questioned costs identified. Identification as a Repeat Finding, if Applicable: N/A. Recommendation: We recommend AcademyHealth enhance it's controls over preparation of the SEFA and it should be reviewed and approved by an individual in a supervisory capacity. The SEFA should be prepared in accordance with the regulations under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
2024-004 - Material Misstatement of the Schedule of Expenditures of Federal Awards (SEFA) Finding Type: Material weakness in internal control over compliance Federal Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting Condition/Finding: The Schedule of Expenditures of Federal Awards (SEFA), as initially provided for audit, contained material misstatements. The original version of the SEFA did not accurately report the total amount of federal expenditures and required significant audit adjustments to reflect the proper award amounts and program classifications in accordance with the Uniform Guidance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that accurately and completely discloses all federal awards expended during the fiscal year, including the name of the federal program, assistance listing number, amount expended, and applicable pass-through entities. This schedule must be prepared in accordance with GAAP and the Uniform Guidance. Cause: The misstatements were due to inadequate internal controls over the preparation and review of the SEFA. The Village lacked a formal process to ensure the completeness and accuracy of reported federal expenditures prior to submission for audit. Effect: The SEFA, as originally submitted, materially misstated the Village’s federal expenditures for the fiscal year, which could have resulted in the incorrect identification of major programs and misrepresentation of federal activity in the audit. This represents a material weakness in internal control over compliance. Recommendation: We recommend that the Village implement procedures to ensure that the SEFA is prepared using complete, reconciled grant expenditure data and that it is reviewed by a qualified individual prior to submission for audit. Supporting documentation should be maintained to substantiate amounts reported by federal program. View of Responsible Officials: Management’s response and planned corrective action can be found in the accompanying Corrective Action Plan.
2025-001 – Incomplete and Inaccurate Schedule of Expenditures of Federal Awards (SEFA) Criteria In accordance with 2 CFR § 200.508(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must be prepared in accordance with the requirements of 2 CFR § 200.510(b), which includes reporting total federal awards expended for each federal program during the audit period, regardless of whether a reimbursement has been requested. Condition During our audit of the SEFA, we noted that the reported expenditures for the Economic Development Cluster only included those amounts for which reimbursement requests had been submitted as of year-end. Expenditures that had been incurred but not yet submitted for reimbursement were omitted. In addition, other grants were inadvertently excluded from the SEFA schedule. This resulted in an incomplete and inaccurate presentation of total federal expenditures for the fiscal year. Cause The cause of this condition was a misunderstanding by management regarding the proper basis for reporting federal expenditures. Management relied solely on reimbursement activity, rather than on total expenditures incurred during the audit period, when preparing the SEFA. In addition, management should review all federal funding/expenditures activity to verify all grants are captured on the SEFA. Effect Failure to report all federal expenditures incurred during the reporting period resulted in a misstatement of total federal awards expended. This can impact the determination of major programs, the risk assessment process, and federal oversight. Additionally, it results in noncompliance with federal regulations governing SEFA preparation. Recommendation We recommend that management implement procedures to ensure the SEFA includes all federal expenditures incurred during the reporting period, regardless of whether reimbursement has been requested. This should include reconciling SEFA amounts to the underlying accounting records and grant activity, as well as training responsible personnel on Uniform Guidance requirements for SEFA reporting. Management’s Response Responsible Official’s Response and Corrective Action Planned: We have implemented procedures to ensure that the SEFA includes all federal expenditures incurred during the reporting period, regardless of whether reimbursement has been requested. Reconciliation of the SEFA amounts are completed monthly. Management will also offer and require training to all personnel responsible on the Uniform Guidance requirements for SEFA reporting. Implementation Date: Immediate Person Responsible for Corrective Action Plan: Chief Financial Officer, Ashley Cason