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
2024-003 – Schedule of Expenditures of Federal Awards Federal program information: Funding Agency: All major program funding agencies Title: All major programs Assistance Listing Number: All major program ALN’s Award Periods: All major program award periods Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502. Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Furthermore, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances. Lastly, several programs with different ALN’s are included in the same fund and were not broken out on the SEFA. Additional effort was needed to break out the cash receipts and expenditures for each of the different ALN’s. Context: Based on review of the ALN’s and the amounts reported on the SEFA. Questioned Costs: None. Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA. Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis. Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information. Beginning balances should agree to the prior year balances. Accrual entries and expense balances should be finalized before the preparation of the SEFA. For the BIE School Grant fund, ensure expenditures and cash receipts are broken out by the different ALN’s on the SEFA. Duckwater Shoshone Tribe Governmental Services Department Schedule of Findings and Questioned Costs — continued For the Year Ended December 31, 2024 Section III — Federal Award Findings and Questioned Costs – continued 2024-003 – Schedule of Expenditures of Federal Awards – continued Management Response: The Finance Department will begin close out work on the year under audit as soon as the year ends, so that all accounts, including expenditures will be accurately adjusted before the SEFA is prepared. Finance will verify all Assistance Listing Numbers on the SEFA. Once the SEFA is prepared, it will be independently reviewed by a contracted CPA before submitting the SEFA to the auditor.
2024-003 – Schedule of Expenditures of Federal Awards Federal program information: Funding Agency: All major program funding agencies Title: All major programs Assistance Listing Number: All major program ALN’s Award Periods: All major program award periods Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502. Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Furthermore, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances. Lastly, several programs with different ALN’s are included in the same fund and were not broken out on the SEFA. Additional effort was needed to break out the cash receipts and expenditures for each of the different ALN’s. Context: Based on review of the ALN’s and the amounts reported on the SEFA. Questioned Costs: None. Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA. Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis. Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information. Beginning balances should agree to the prior year balances. Accrual entries and expense balances should be finalized before the preparation of the SEFA. For the BIE School Grant fund, ensure expenditures and cash receipts are broken out by the different ALN’s on the SEFA. Duckwater Shoshone Tribe Governmental Services Department Schedule of Findings and Questioned Costs — continued For the Year Ended December 31, 2024 Section III — Federal Award Findings and Questioned Costs – continued 2024-003 – Schedule of Expenditures of Federal Awards – continued Management Response: The Finance Department will begin close out work on the year under audit as soon as the year ends, so that all accounts, including expenditures will be accurately adjusted before the SEFA is prepared. Finance will verify all Assistance Listing Numbers on the SEFA. Once the SEFA is prepared, it will be independently reviewed by a contracted CPA before submitting the SEFA to the auditor.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: U.S. Department of Commerce. Federal Programs: Ocean Exploration, Coastal Zone Management Administration Awards, Marine Sanctuary Program, Unallied Management Projects, Habitat Conservation, Building Resilience through Community Stewardship of Coral Reefs, Marine Debris Program. Assistance Listing Numbers: 11.011, 11.419, 11.429, 11.454, 11.463, 11.473, 11.999. Compliance Requirement: Reporting. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes total Federal expenditures, the name of the Federal agency, the Assistance Listing Number, and other identifying information. The SEFA must be accurate, complete, and prepared in accordance with the Uniform Guidance to facilitate the Single Audit. Condition: During our audit of the SEFA for the year ended December 31, 2024, we noted that the initial SEFA provided by management contained material inaccuracies. Specifically, we noted that amounts passed through to subrecipients were not properly reported and certain programs had expenditures that were inaccurately reported. Cause: The inaccuracies in the SEFA were primarily due to a lack of formalized procedures and oversight in the SEFA preparation process. Effect or Potential Effect: An incomplete or inaccurate SEFA may result in inadequate audit coverage, potential noncompliance with Federal reporting requirements, and increased risk of questioned costs or funding disallowances. Questioned Costs: None. Context: The initial SEFA provided for audit included approximately $310,000 passed through to subrecipients. During the performance of our audit procedures, we identified approximately $5.2 million in amounts passed through to subrecipients that were omitted. Additionally, other expenses were omitted from the SEFA as well. The SEFA was subsequently revised and corrected by management. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management implement formal procedures for compiling the SEFA, including a reconciliation of expenditures to the general ledger, review of all grant agreements for required disclosures, and a documented supervisory review prior to finalization. Staff involved in Federal grant reporting should also receive training on SEFA requirements under Uniform Guidance.
Assistance Number: 16.753 Congressionally Recommended Awards (CRA) Year: 2024 Name of Federal Agency: U.S. Department of Justice Name of Pass-Thru Agency: Direct award Type of Compliance Finding: B – Allowable Costs/Cost Principles Condition: 2 CFR Part 200, section 200.510 requires the City to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the financial statements. The City’s Schedule of Expenditures of Federal Awards (SEFA) for the year ended December 31, 2024, included expenditures that were incurred in the prior fiscal year. These prior year expenditures were not reported on the 2023 SEFA and incorrectly reported in the current year Criteria: An entity that expends federal awards must have controls in place that would enable the entity to prepare a SEFA including controls that determine the accuracy of the amount of expenditures reported for each federal program. In accordance with 2 CFR §200.502(a), expenditures are to be reported on the SEFA in the fiscal year in which the activity related to the federal award occurs. Questioned Costs: N/A Context: The City did not report $705,791 of expenses on the 2023 SEFA and instead reported these amounts on the 2024 SEFA. Cause: The error occurred due to inadequate review procedures over the preparation of the SEFA. Specifically, the City did not reconcile SEFA amounts to program reports to ensure expenditures were reported correctly at year-end. Effect: The SEFA understated expenditures in the prior year and overstated expenditures in the current year, potentially misleading federal agencies and pass-through entities about the City’s use of federal funds. This could impact risk assessments, reporting accuracy, and decisions regarding future funding. The lack of an accurate and complete SEFA could lead to grant noncompliance and noncompliance with Subpart F, Audit Requirements, of 2 CFR Part 200. Recommendation: We recommend the City strengthen its SEFA preparation and review process by: • Reconciling federal expenditures reported on the SEFA to the general ledger by program and grant year. • Implementing a secondary review to verify that no prior year expenditures are included in current year reporting. • Providing staff with training on SEFA preparation requirements under 2 CFR Part 200. Views of Responsible Officials (Unaudited): City leadership agrees with the auditor’s finding and appreciates the recommendations for improvements. The same root causes identified in Finding 2024-003 – system transition, staff turnover, and decentralized grant management – contributed to this compliance issue. The City recognizes the need for stronger internal controls, centralized oversight, and consistent review of grant management.
#2024-007 – Major Federal Award Finding – Federal Grants Management Nature of Finding: Federal Grants Management – Preparation and Maintenance of Schedule of Expenditures of Federal Awards Compliance Finding and Significant Deficiency in Internal Controls over Compliance Criteria/Condition: 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, which must include the total federal awards expended, as determined in accordance with §200.502. For SEFA reporting, the components of the SEFA were not accurately maintained. Cause/Context: While the Organization has a policy related to grant administration and tracking of expenditures, the procedures and controls relating to the policy were not properly implemented during 2024. Effect: Expenditures for the Coronavirus State and Local Fiscal Recovery Funds grants were not accurately reported on the auditee-prepared SEFA. The SEFA presented has been adjusted for these errors. Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: We lacked consistent grant-level financial reporting, which made preparation of the required Schedule of Expenditures of Federal Awards (SEFA) difficult and time consuming. We have improved our accounting systems and can now procedure regular internal financial reports by grant. All grant managers are given a monthly transaction listing for their grants to ensure transactions are posted to the correct grant. They are also given monthly financial statements for each grant to reconcile to their records. Financial reporting will be done on a timely basis, ideally no more than 5 days after the month closing so grant managers can reconcile their records.
Finding 2024-001 – ReportingInformation of the federal program:Federal Grantor: Department of Health and Human Services (HHS)Assistance Listing No.: 93.391, COVID-19 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare CrisisPass-Through Grantor: Chicago Department of Public HealthFederal Grantor: Department of Health and Human Services (HHS)Assistance Listing No.: 93.323, COVID-19 Epidemiology and Laboratory Capacity for Infectious DiseasesPass-Through Grantor: Chicago Department of Public HealthCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain expenditures related to the COVID-19 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis and the COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases were overstated by $347,352 and $164,120, respectively, on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.Cause:Endeavor’s internal controls over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:Endeavor reported expenditures of $872,758 on the preliminary SEFA, but on the final SEFA reported $525,406 related to the COVID-19 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis. Endeavor reported expenditures of $1,233,464 on the preliminary SEFA, but on the final SEFA reported $1,069,344 related to the COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases.Identification as a repeat finding, if applicable:This is a repeat finding of 2023-001.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Management acknowledges the findings related to SEFA reporting. The issue arose from miscommunication in determining which expenditures should be reported for the programs in question. We recognize the importance of accurate and complete reporting. We will enhance our review and communication processes to ensure clarity between program managers and the finance team when identifying reportable expenditures. We have already taken steps to address this issue by:• Creating a new policy and procedure for SEFA reporting and establishing clear guidance and documentation for expenses that should be included in the SEFA.• Implementing an expanded review process to ensure accuracy prior to submission.
Program name: State and Local Fiscal Recover Funds Assistance Listing: 21.027, 14.239, 14,231 Federal award Identification number: All Federal award year: All Federal awarding agency: U.S. Department of Treasury and U.S. Department of Housing and Urban Development Criteria: In accordance with 2 CFR 200.510(b), the auditee must prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) that include the total federal awards expended for each federal program, the assistance listing number (ALN), the name of the federal agency, and the pass-through entity identifying number. Accurate SEFA reporting is essential to support the auditor's responsibility under 2 CFR 200.518 major program determination and for federal oversight. Condition: The Organization failed to include the correct amount of expenditures and the ALN numbers. The awards were identified as federal during the current audit; however, the Organization failed to include the ALN in the current year’s SEFA. After additional inquiry and evaluation, they were determined to fall under ALN 14.239, 14.231 and 21.027. Cause: There were deficiencies in the Organizations's internal controls over the SEFA preparation, specifically identifying the current ALN number for each federal award. The absence of the assistance listing number indicates inadequate review and verification procedures. Effect or Potential Effect: Incomplete and inaccurate SEFA reporting may lead to noncompliance with Uniform Guidance requirements and increases the risk of omitted or misclassified programs subject to audit. Missing ALNs may also hinder proper audit coverage and oversight by federal and pass-through entities. Repeat finding: This is not a repeat finding. Perspective: This issue affected three federal awards and represents a systemic control issue over SEFA preparation. There is a reasonable possibility that similar issues could recur if not addressed. Questioned costs: There are no questioned costs associated with this finding. Perspective: This issue affected two federal awards and represents a systemic control issue over SEFA preparation. There is a reasonable possibility that similar issues could recur if not addressed. Recommendation: We recommend that the Organization: Enhance internal controls over the SEFA preparation process to ensure federal programs are accurately identified, classified, and reported, including verification of ALNs. Designate responsibility within the finance team for verifying the federal nature of all awards and ensure ongoing training on SEFA and Uniform Guidance Requirements. Management’s response and corrective action plan (unaudited): See corrective action plan
Criteria: In accordance with 2 CFR § 200.510(b), recipients of federal awards are required to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements. The SEFA must include all federal awards expended during the fiscal year and must be prepared in accordance with the requirements of the Uniform Guidance. Condition: During our audit of the SEFA, we noted that approximately $1.2 million in federal expenditures were initially omitted from the draft schedule provided by management. These expenditures were related to pass-through awards and were not identified or reported until audit inquiries were made. Cause: The entity did not have adequate internal control procedures in place to ensure that all federal expenditures were identified and included in the SEFA prior to audit. Effect: The initial SEFA provided for audit was materially misstated. Failure to accurately report all federal expenditures on the SEFA could result in noncompliance with Uniform Guidance reporting requirements, misrepresentation of the scope of federal activity, and potential exclusion of federal programs from audit coverage under the Single Audit Act. This increases the risk that material noncompliance in major programs may go undetected.Questioned Costs: None. Recommendation: We recommend that management implement stronger internal controls over the preparation of the SEFA, including reconciliation procedures between the general ledger and grant records, periodic reviews during the year, and oversight by personnel with a thorough understanding of federal reporting requirements. Management should ensure that all departments responsible for federal programs provide complete and timely information to accounting personnel for SEFA preparation. Organization Response: Management agrees with this finding.
Federal Program(s): Enhanced Mobility of Seniors and Individuals with Disabilities (ALN 20.513) Agencies: U.S. Department of Transportation – Federal Transit Administration Criteria - 2 CFR §200.510: Auditee must prepare an accurate SEFA including ALN, program name, award number, award year, pass-through number, and total expenditures. 2 CFR §200.332: Pass-through entities must identify the ALN in all subaward documents. 2 CFR §200.303: Auditees must establish and maintain effective internal controls over federal awards. Condition - During our audit of ENVIDA’s federal programs, we identified an internal control deficiency affecting the accuracy of the Schedule of Expenditures of Federal Awards (SEFA). Context - The issue stems from the Envida's need to formalize documented procedures and adequate review over the SEFA preparation process, as well as the need to implement controls for verifying federal award information received from pass-through entities. Specifically, ENVIDA’s SEFA included initial misstatements, including erroneous reporting of $61,576 in required matched funds as federal expenditures (which they were not), the inclusion of $79,225 in OnDemand expenditures that were not federally funded (incorrect information from passthrough entity), and a $45,403 posting error that misclassified expenditures between grant years. These errors resulted in a material overstatement of the SEFA federal expenditures as originally prepared. Management corrected these errors during the audit process. Cause - Due to lack of funding information provided in the contracts with a major passthrough entity, Envida is unable to verify accuracy of federal funding information contemporaneously. For 2024, incomplete or inaccurate information from pass-through entities, coupled with the absence of formalized internal controls to verify and document federal award details, led to initial errors in SEFA reporting. Contracts with the pass-through entity, Pikes Peak Area Council of Governments (PPACG), did not include the required Assistance Listing Numbers (ALNs), which contributed to the confusion and misreporting. These deficiencies are inconsistent with the requirements of 2 CFR §200.510(b), §200.303, and §200.332(a)(1), which collectively mandate accurate SEFA reporting, proper identification of federal awards, and internal controls over federal funding. Effect - SEFA initially overstated by 15.5% due to match and OnDemand errors. FY24 award overstated by 17.5%; FY25 award understated by 14.6% Potential audit coverage gaps and risk misassessment under 2 CFR §200.518. Recommendation - We recommend that ENVIDA establish and document clear procedures for the preparation of the Schedule of Expenditures of Federal Awards (SEFA) as well as for the proper classification of accounts receivable. In addition, ENVIDA should implement a supervisory review process to help ensure accuracy and compliance with federal requirements. To further strengthen controls, all subaward agreements should require written confirmation of the Assistance Listing Numbers (ALNs). Finally, ENVIDA should verify federal award information directly against official federal award notices prior to preparing the SEFA. Views of Responsible Official and Planned Corrective Action - Management has agreed with the finding and plans to revise the SEFA to reflect accurate federal expenditures. They will work with pass-through entities to ensure future subaward documentation includes all required federal award identifiers and will implement internal controls to prevent recurrence.
2024-003: Significant Deficiency: Reporting Criteria: The Code of Federal Regulations (CFR) section 200.510 (b) states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report(s) or nine months after the end of the audit period (whichever is earlier) to the Federal Audit Clearinghouse (FAC). Condition: During the audit the Organization submitted the December 31, 2023 required reporting package to the FAC 167 days past the deadline without an approved extension from the oversight agency. Cause: The Organization had not implemented policies or procedures, to the degree necessary, to ensure that the audit, data collection form, and reporting package was complete, accurate, and submitted within the required time frame. Effect: The Organization was not in compliance with federal regulations. Section III: Federal Award Findings and Questioned Costs (Continued) 2024-003: Significant Deficiency: Reporting (Continued) Recommendation: We recommend that management of the Organization implement policies, procedures, and internal controls over compliance to ensure that required federal reporting is timely and in accordance with federal regulations. Views of Responsible Officials: Management agrees with this finding and their response is included in the corrective action plan.
2024-005- Internal Control over Grant Monitoring and Reporting Finding Type: Material Weakness in Internal Control and Material Noncompliance in accordance with Uniform Guidance. Federal Program and Agency: Airport Improvement Program – ALN #20.106; U.S. Department of Transportation – Federal Aviation Administration (FAA) Repeat Finding: No Criteria: Per 2 CFR § 200.303 and 2 CFR § 200.510(b), the recipient is required to establish and maintain effective internal control over federal awards and to ensure complete and accurate reporting of all federal expenditures on the Schedule of Expenditures of Federal Awards (SEFA). Adequate oversight and reconciliation processes must be in place to ensure all allowable expenditures are properly recorded and submitted for reimbursement. Condition: During the financial audit for fiscal year ending December 31, 2024, it was identified that approximately $2.7 million in expenditures related to a federally funded airport construction project were not communicated to the finance department in a timely manner. Consequently, the expenses were not reported in the correct accounting period and were excluded from the County’s grant monitoring process. These expenditures were incurred under ALN #20.106 and were not submitted for reimbursement timely. Questioned Costs: None. While invoices were not submitted timely, the costs incurred appear allowable, supported, and related to the approved project scope. The County has since submitted the majority of expenditures for reimbursement. Context: The prior period adjustment was identified during 2024 audit testing. Due to the lack of communication and oversight by the former Airport Manager and Grant Manager, these amounts were not reported in the proper period or submitted for reimbursement timely. The issue was not limited to a single transaction. A prior period adjustment was recognized in the 2024 financial statements to properly reflect these federal expenditures. Cause: The County did not have adequate internal controls in place to ensure timely receipt and tracking of grant-related invoices. The project oversight was insufficient, and the individuals responsible for managing the grant and construction activities failed to communicate expenditures to the finance department timely. Effect: The County materially understated federal expenditures in prior reporting period(s) and did not submit timely reimbursement request for eligible costs. This resulted in a material adjustment to the County’s financial statements and required correction in the current audit period. Recommendations: The County should implement formal internal control procedures to ensure all involved personnel are held accountable for timely communication of incurred costs. All federal grant activities should be monitored on a regular basis by the County and related departments to ensure expenditures are properly recorded and reported. View of Responsible Officials: The County concurs with the finding. The omission of the expenditures was the result of a lack of communication between the former Airport Manager, Grant Manager and finance department. Since discovery, the County has taken steps to ensure improved coordination and documentation of all grant-related expenditures. Project oversight and internal controls will be strengthened through regular reconciliation between project managers and the finance department to ensure timely reporting, submission for reimbursement, and inclusion on the SEFA. The County is in the process of submitting the allowable expenditures for reimbursement and updating internal procedures to prevent future occurrences.
Criteria: 2 CFR §200.510(b) requires the auditee to prepare a schedule of expenditures of federal awards (SEFA). Condition: On the original SEFA provided for the audit, one grant was inaccurately omitted from the schedule and one grant was inaccurately included in the schedule, resulting in restatements of the SEFA. Cause: The grant agreement received bythe Center indicated that no federal funds were being awarded, but the Illinois Comptrollerhadearmarkedthefundsfrom afederalfund.Thegrantthatwasinaccuratelyincludedintheschedulewasa subcontractor agreement which does not need to be included in the SEFA. Effect: The Center was not in compliance with 2 CFR §200.510(b) and the SEFA was inaccurate and not complete. Questioned Costs: None Recommendation: Management should review grant awards and agreements and verify whether the funds received were from federal funds as well update its understanding of what agreements should be included in the SEFA. Views of Responsible Officials: Management agrees with the finding; see corrective action plan.
Condition: On the original SEFA provided for the audit, one grant was inaccurately omitted from the schedule, resulting in a restatement of the SEFA. The SEFA provided for the audit did not include a grant passed through the Hawaii Community Foundation, AL Number 66.203 totaling $79,194. Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements. The schedule must list individual Federal programs by Federal agency and Assistance Listing number, provide the total Federal awards expended, be accurate and complete, and include notes describing the significant accounting policies used in preparing the schedule. Cause: The Organization did not have adequate procedures in place to ensure that all Federal expenditures were identified and included in the SEFA, nor was a comprehensive reconciliation to the general ledger performed prior to submission for audit. Effect: The SEFA as prepared by management was incomplete. This increases the risk that users of the SEFA (including Federal agencies and pass-through entities) could be misled as to the level of Federal funding expended. It also impairs transparency and accountability in Federal award reporting and could result in questioned costs or findings by oversight agencies. Questioned Costs: None Recommendation: We recommend that the Organization implement procedures to ensure that the SEFA is prepared accurately and completely. These procedures should include reconciling the SEFA to the general ledger and grant revenue accounts, confirming completeness by reviewing all grant agreements and funding sources, and establishing a management review process to validate accuracy prior to submission for audit. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding; see corrective action plan.