Federal program: U.S. Department of the Treasury; Passed-through Illinois Department of Public Health-ALN 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Criteria: In accordance with 2 CFR 200 200.510(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 2 CFR 200.502. Condition: The Medical Center's SEFA for the year ended August 31, 2023, which is supplementary information to the Medical Center's financial statements, was restated to include an additional $2,000,000 of federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027. Management's processes and internal controls for ensuring that all federal funds expended by the Medical Center are captured and reported in the SEFA were inadquate to detect the omission of the $2,000,000 of federal expenditures. Context: The additional $2,000,000 of federal expenditures increased the total federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027 to $2,899,890. This resulted in the reissuance of the single audit report. Cause: The additional federal program expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, were provided under a separate pass-through grant and were inadvertently omitted from the SEFA due to an oversight in the preparation of the SEFA resulting in part from and coinciding with the turnover of key personnel involved with and having oversight over the $2,000,000 award. Effect: Improper reporting of federal expenditures can result in material errors on the SEFA leading to inaccurate major program determination. In this instance an error did result in the identification of an additional major program. Repeat finding: No. Recommendation: We recommend that management enhance its process and internal controls around the timely identification of federal awards and preparation of the SEFA to ensure completeness and accuracy of the SEFA. Views of responsible officials of the auditee: Management agrees with the finding and the auditor's recommendation.
Ryan White HIV/AIDS Program Part A SEFA reporting Federal Agency: Department of Health and Human Services Program: HIV Emergency Relief Project Grants (Ryan White HIV/AIDS Program Part A) Assistance Listing #: 93.914 Criteria OMB Uniform Guidance 2 CFR 200.510(b)(3) requires that the auditee provide the Federal awards expended for each individual Federal program on the Schedule of Expenditures of Federal Awards (SEFA). In accordance with 2 CFR 200.502, the determination of when a Federal award is expended, and thereby reported on the SEFA, is generally based on when the activity related to the Federal award occurs. Condition The Ryan White HIV/AIDS Program Part A reimburses award recipients based on the number of units of care coordination services provided to eligible patients plus reimbursement for program deliverables coordinated by the recipient. Sunset Park tracked expenditures for SEFA reporting purposes on the basis of care coordinator salary expenses incurred, rather than on the reimbursement received from the passthrough sponsor. As a result, expenditures reported on the draft 2023 SEFA were understated. This has been corrected by management in the final SEFA included in this report. There was no impact on our audit scoping given this award was already included as a major program. Cause Sunset Park did not have a process in place to identify awards that are not cost reimbursement based to ensure proper reporting of such awards on the SEFA. Effect The draft 2023 SEFA underreported reimbursement received under this award by $211,026, which has been corrected in the final SEFA included in this report. Audit scoping was not impacted, but could have been if the amount of the award after adjustment exceeded the Type A threshold or resulted in audit coverage over the total SEFA that was no longer sufficient. Questioned Costs There are no questioned costs associated with this finding. Recommendation Sunset Park should continue to review all award terms to understand the grant’s reimbursement and reporting structure. For awards that are not cost reimbursement based, Sunset Park should implement a control to review activity under the award at least annually and ensure that amounts reported on the SEFA correlate to the allowable activities ultimately reimbursed by the granting agency.
Federal program: U.S. Department of the Treasury; Passed-through Illinois Department of Public Health-ALN 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Criteria: In accordance with 2 CFR 200 200.510(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 2 CFR 200.502. Condition: The Medical Center's SEFA for the year ended August 31, 2023, which is supplementary information to the Medical Center's financial statements, was restated to include an additional $2,000,000 of federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027. Management's processes and internal controls for ensuring that all federal funds expended by the Medical Center are captured and reported in the SEFA were inadquate to detect the omission of the $2,000,000 of federal expenditures. Context: The additional $2,000,000 of federal expenditures increased the total federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027 to $2,899,890. This resulted in the reissuance of the single audit report. Cause: The additional federal program expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, were provided under a separate pass-through grant and were inadvertently omitted from the SEFA due to an oversight in the preparation of the SEFA resulting in part from and coinciding with the turnover of key personnel involved with and having oversight over the $2,000,000 award. Effect: Improper reporting of federal expenditures can result in material errors on the SEFA leading to inaccurate major program determination. In this instance an error did result in the identification of an additional major program. Repeat finding: No. Recommendation: We recommend that management enhance its process and internal controls around the timely identification of federal awards and preparation of the SEFA to ensure completeness and accuracy of the SEFA. Views of responsible officials of the auditee: Management agrees with the finding and the auditor's recommendation.
Internal Control Impact: Materail weakness. Repeat Finding: No. Questioned Costs: No. Criteria: 2 CFR section 200.510(b) requires the auditee to prepare a Schedule of Expenditures of Federal Awards (SEFA) that must contain all federal awards expended during the period. 2 CFR section 200.502 requires proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cutoff and reporting. Condition: The School did not adequately track its expenditures of federal awards and did not prepare a complete SEFA as of the year end. Cause: The School did not have an adequate process to track expenditures of federal awards. This resulted in the School not being aware that they had expended more than $750,000 of federal awards during the year and would be subject to the Uniform Guidance. Effect: Failure to adequately track expenditures of federal awards could result in the SEFA being prepared inaccurately or in an untimely manner. Recommendation: Marshall Jones recommends that the School establish a process to track the expenditures of federal awards during the year. This will help the School to be aware of crossing the Uniform Guidance threshold, enabling the School to prepare the SEFA accurately and timely. Views of Responsible Officials: Management of the School concurs with the finding. Please refer to the Corrective Action Plan.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Failure to inform auditors of the need for a single audit. Federal programs impacted: All ALNs, see SEFA. (General) Questioned Costs: None, NA Condition: The Clinic expended more than $750,000 in federal awards, triggering a single audit requirement and did not bring this to the auditors attention during the audit. The Clininc failed to properly maintain appropriate records to determine the need for a single audit as required by Uniform Guidance. Criteria: 2 CFR section 200.508(b)&(d) states that one responsibility of the auditee is to prepare appropriate financial statements, including the SEFA in accordance with 200.510. Part (d) states they must provide auditor with information as needed to perform the audit required. See also section 99.300(a). Cause: The Clinic did not have proper controls in place to determine the need for a single audit as required by the Uniform Guidance. Effect: Engagement letter and fees had to be reevaluated, and the nature, timing, and extent of the audit were impacted by the additional requirement. Recommendation: We recommend that the Clinic develops and implements policies and procedures to properly prepare the SEFA. Management Response: Management stated they will do a better job of tracking federal expenditures for the next audit year as they do not want to trigger a single audit again knowingly or otherwise and do not want any delays in the audit like this year.
Failure to inform auditors of the need for a single audit. Federal programs impacted: All ALNs, see SEFA. (General) Questioned Costs: None, NA Condition: The Clinic expended more than $750,000 in federal awards, triggering a single audit requirement and did not bring this to the auditors attention during the audit. The Clininc failed to properly maintain appropriate records to determine the need for a single audit as required by Uniform Guidance. Criteria: 2 CFR section 200.508(b)&(d) states that one responsibility of the auditee is to prepare appropriate financial statements, including the SEFA in accordance with 200.510. Part (d) states they must provide auditor with information as needed to perform the audit required. See also section 99.300(a). Cause: The Clinic did not have proper controls in place to determine the need for a single audit as required by the Uniform Guidance. Effect: Engagement letter and fees had to be reevaluated, and the nature, timing, and extent of the audit were impacted by the additional requirement. Recommendation: We recommend that the Clinic develops and implements policies and procedures to properly prepare the SEFA. Management Response: Management stated they will do a better job of tracking federal expenditures for the next audit year as they do not want to trigger a single audit again knowingly or otherwise and do not want any delays in the audit like this year.
Finding 2023-001: SEFA – Material Weakness Criteria: U.S. Code § 200.508(b) states that an auditee must prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) in accordance with § 200.510. U.S. Code § 200.510(b)(3) states that at a minimum the SEFA provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. The inclusion of correct Assistance Listing numbers on the SEFA is a critical factor in determining major and non-major programs and designing appropriate audit procedures for individual grants. Condition: The SEFA prepared by management included an incorrect Assistance Listing (AL) number for one grant. Federal grant AL No. 20.513 Enhanced Mobility of Seniors and Individuals with Disabilities was incorrectly identified as AL No. 20.507 Mobility Management. While both grants are from the Federal Transit Agency, they fall under different clusters in the Office of Management and Budget’s Compliance Supplement and thus have different audit requirements. Cause: Paratransit’s internal controls over the completeness of the SEFA were not operating effectively. Effect: The grant in question was initially identified as a major grant and certain audit procedures were applied. The revision of the AL number resulted in this grant being considered non-major, thus not required to be tested. Recommendation: We recommend management verify with the grantor the AL number of the grant. This can be done by obtaining this information from grant documents, or direct communication with the grantor. We further recommend the SEFA be reviewed for accuracy by an individual not included in the SEFA preparation process. Review should be notated with initials and date. Management’s Response: See Corrective Action Plan
Finding 2023-001: Internal Controls over Compliance and Other Matters – Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA); AL No. 84.336 Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards, “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502 Basis for determining Federal awards expended.” Condition: Federal expenditures were not correctly identified on the School’s initial SEFA prepared for the audit. Per review of supporting documentation and inquiry of management, it was determined that the initial SEFA excluded $30,500 of federal expenditures for the Teacher Quality Partnership Grants – AL No. 84.336 program (U.S. Department of Education. Passed through to the School from the University of St. Thomas. Pass Through Entity Identifying Number S336S200016). This federal grant had been identified as Local Revenues, instead of Federal Revenues, which caused the related federal expenditures to be missed in the initial SEFA preparation. Cause: Internal controls are not in place to identify all contract and grant agreements that are federally funded. Effect: The amount of federal expenditures reported on the SEFA was initially understated by $30,500. The final SEFA included in the single audit reporting package accurately included these amounts. By not having proper controls over SEFA preparation and federal award identification, there is a risk that the SEFA will not reflect all of the federal awards subject to the Uniform Guidance. Questioned Costs: None. Repeat Finding of Immediate Prior Year: Yes. Finding 2022-002 – Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA); AL Nos. 93.434 and 93.575. Recommendation: We recommend that the School review internal control procedures to ensure timely identification of federal awards and related expenditures. Views of Responsible Officials and Planned Corrective Action: The School agrees with this finding. Lisa Hendricks, the Director of Finance, and the 3rd party accountant will work closely to develop a grant tracking system that determines the source of the grant funds prior to expending any of the funds.
2023-001 Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards (SEFA)) Information on the Major Federal Program: Department of Homeland Security Federal Emergency Management Agency Federal Assistance Listing Number: 97.024 Federal Assistance Listing Name: Emergency Food and Shelter National Board Program Pass-through Awards under the Uniform Guidance Requirements: Pass-through Entity Award Name Award Period The United Way SE Family Center DC Phase 39 November 1, 2021 to April 30, 2023 The United Way SE Family Center DC ARPAR November 1, 2021 to April 30, 2023 The United Way Mont. Co Family Center Phase 39 November 1, 2021 to April 30, 2023 The United Way Mont. Co Family Center ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners PG Co Phase 39 November 1, 2021 to April 30, 2023 The United Way Parish Partners PG Co ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners Calvert Co ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners Charles Co ARPAR November 1, 2021 to April 30, 2023 The United Way Angel’s Watch Charles Co ARPAR November 1, 2021 to April 30, 2023 The United Way St. Josephine’s Shelter DC ARPAR November 1, 2021 to April 30, 2023 The United Way Adam’s Place Shelter DC ARPAR November 1, 2021 to April 30, 2023 The United Way SMFB ARPAR November 1, 2021 to April 30, 2023 The United Way SCC Food Pantry Phase 39 November 1, 2021 to April 30, 2023 The United Way SCC Food Pantry ARPAR November 1, 2021 to April 30, 2023 The United Way Phase HR22 April 13, 2022 to July 7, 2022 Criteria: Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with §200.302 Financial Management, a non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal entity must provide for the following: (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.327 Financial Reporting and §200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for Federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets.
2023-001 Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards (SEFA)) Information on the Major Federal Program: Department of Homeland Security Federal Emergency Management Agency Federal Assistance Listing Number: 97.024 Federal Assistance Listing Name: Emergency Food and Shelter National Board Program Pass-through Awards under the Uniform Guidance Requirements: Pass-through Entity Award Name Award Period The United Way SE Family Center DC Phase 39 November 1, 2021 to April 30, 2023 The United Way SE Family Center DC ARPAR November 1, 2021 to April 30, 2023 The United Way Mont. Co Family Center Phase 39 November 1, 2021 to April 30, 2023 The United Way Mont. Co Family Center ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners PG Co Phase 39 November 1, 2021 to April 30, 2023 The United Way Parish Partners PG Co ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners Calvert Co ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners Charles Co ARPAR November 1, 2021 to April 30, 2023 The United Way Angel’s Watch Charles Co ARPAR November 1, 2021 to April 30, 2023 The United Way St. Josephine’s Shelter DC ARPAR November 1, 2021 to April 30, 2023 The United Way Adam’s Place Shelter DC ARPAR November 1, 2021 to April 30, 2023 The United Way SMFB ARPAR November 1, 2021 to April 30, 2023 The United Way SCC Food Pantry Phase 39 November 1, 2021 to April 30, 2023 The United Way SCC Food Pantry ARPAR November 1, 2021 to April 30, 2023 The United Way Phase HR22 April 13, 2022 to July 7, 2022 Criteria: Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with §200.302 Financial Management, a non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal entity must provide for the following: (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.327 Financial Reporting and §200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for Federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets.
Assistance Listing Number, Federal Agency, and Program Name - 84.425D, U.S. Department of Education, COVID 19 ESSER Formula Fund II 11r(2) and COVID 19 ESSER Formula Fund II Learning Loss 98c Finding Type - Significant deficiency Criteria - Per 2 CFR 200.510(b) and Section 500.508(b) of Title 2, Subtitle A, Chapter II, Part 200, Subpart F, auditees must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with Section 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete, as it omitted expenditures from two federal awards. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Two grants were omitted from the SEFA prepared by management totaling $816,904 in expenditures, which was identified by the auditor during the annual audit and subsequently included on the SEFA. Expenditures were recorded in the School District's general ledger but were excluded from the School District's preparation of the SEFA. Cause and Effect - The School District did not have sufficient controls in place to properly reconcile federal revenue to the federal expenditures reflected on the SEFA to validate that all federal grants awarded and expended were included in the SEFA. Recommendation - The School District should implement a process to ensure that the SEFA is prepared timely and that all grant expenditures are included accurately. Views of Responsible Officials and Corrective Action Plan - The School District will develop a SEFA checklist to help ensure all federal expenditures are properly reported. Additional processes will be put in place by management to review the SEFA in advance of the annual audit to effectively meet audit report timelines and help ensure completeness, validity, and accuracy of the final SEFA reporting.
Assistance Listing Number, Federal Agency, and Program Name - 84.425D, U.S. Department of Education, COVID 19 ESSER Formula Fund II 11r(2) and COVID 19 ESSER Formula Fund II Learning Loss 98c Finding Type - Significant deficiency Criteria - Per 2 CFR 200.510(b) and Section 500.508(b) of Title 2, Subtitle A, Chapter II, Part 200, Subpart F, auditees must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended as determined in accordance with Section 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was not complete, as it omitted expenditures from two federal awards. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Two grants were omitted from the SEFA prepared by management totaling $816,904 in expenditures, which was identified by the auditor during the annual audit and subsequently included on the SEFA. Expenditures were recorded in the School District's general ledger but were excluded from the School District's preparation of the SEFA. Cause and Effect - The School District did not have sufficient controls in place to properly reconcile federal revenue to the federal expenditures reflected on the SEFA to validate that all federal grants awarded and expended were included in the SEFA. Recommendation - The School District should implement a process to ensure that the SEFA is prepared timely and that all grant expenditures are included accurately. Views of Responsible Officials and Corrective Action Plan - The School District will develop a SEFA checklist to help ensure all federal expenditures are properly reported. Additional processes will be put in place by management to review the SEFA in advance of the annual audit to effectively meet audit report timelines and help ensure completeness, validity, and accuracy of the final SEFA reporting.
Assistance Listing Number, Federal Agency, and Program Name - 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - N/A Pass-through Entity - Genesee County, Michigan Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared, as it originally included expenditures that were improperly excluded from the SEFA for the year ended June 30, 2022. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated. These revisions related to $136,295 of federal awards expended during the year ended June 30, 2022 that were not reported on the SEFA until the year ended June 30, 2023. These expenditures related to ALN 21.027 (Coronavirus State and Local Fiscal Recovery Funds). This amount did not impact the program type or major program determination for the year ended June 30, 2022. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in the City's schedule of expenditures of federal awards for the prior year being understated and the amounts included in the current year expenditures of federal awards prior to audit-identified revisions. The amounts did not impact the program type or major program determination for the year ended June 30, 2022. Recommendation - The City should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards. Views of Responsible Officials and Corrective Action Plan - The City will implement additional supervisory review of expenditures included on the SEFA.
Assistance Listing Number, Federal Agency, and Program Name - 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - N/A Pass-through Entity - Genesee County, Michigan Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must properly prepare the schedule of expenditures of federal awards (SEFA). Per 2 CFR 200.510(b), the SEFA for the period covered by the auditee's financial statements must include the total federal awards expended as determined in accordance with 2 CFR 200.502, which describes the basis for determining federal awards expenses. Condition - The SEFA for the year ended June 30, 2023 was not accurately prepared, as it originally included expenditures that were improperly excluded from the SEFA for the year ended June 30, 2022. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Required revisions were identified during the audit to ensure that the schedule of expenditures of federal awards was accurately stated. These revisions related to $136,295 of federal awards expended during the year ended June 30, 2022 that were not reported on the SEFA until the year ended June 30, 2023. These expenditures related to ALN 21.027 (Coronavirus State and Local Fiscal Recovery Funds). This amount did not impact the program type or major program determination for the year ended June 30, 2022. Cause and Effect - Internal control procedures relative to the identification of federal expenditures to be reported on the SEFA did not operate effectively. This resulted in the City's schedule of expenditures of federal awards for the prior year being understated and the amounts included in the current year expenditures of federal awards prior to audit-identified revisions. The amounts did not impact the program type or major program determination for the year ended June 30, 2022. Recommendation - The City should expand procedures and review processes to ensure the proper expenditures are reported on the schedule of expenditures of federal awards. Views of Responsible Officials and Corrective Action Plan - The City will implement additional supervisory review of expenditures included on the SEFA.
Finding 2023-001 Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition : The Schedule of Expenditures of Federal Awards (SEFA) was overstated by $42,585. Cause : The School included depreciation expense within amounts reported on the SEFA which is not an allowable cost under Uniform Guidance. Effect : An audit adjustment was made to reduce the reported amount on the SEFA for the Child Nutrition Cluster (10.553, 10.555) by $5,988, the Title I, Part A grant (84.010A) by $378, the Student Support and Academic Enrichment Program - Title IV (84.424) by $581, Charter Schools Grant (84.282D) by $95, COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund (84.425D) by $29,896, and the COVID -19 ARP Elementary and Secondary School Emergency Relief (ARP ESSER) Fund (84.425U) by $5,647. Recommendation : We recommend that the School's accountant review and become familiar with Uniform Guidance and CFR 200 requirements to assist with including the accurate expenditure information in the Schedule. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. View of responsible officials : See attached corrective action plan.
Finding 2023-001 Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition : The Schedule of Expenditures of Federal Awards (SEFA) was overstated by $42,585. Cause : The School included depreciation expense within amounts reported on the SEFA which is not an allowable cost under Uniform Guidance. Effect : An audit adjustment was made to reduce the reported amount on the SEFA for the Child Nutrition Cluster (10.553, 10.555) by $5,988, the Title I, Part A grant (84.010A) by $378, the Student Support and Academic Enrichment Program - Title IV (84.424) by $581, Charter Schools Grant (84.282D) by $95, COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund (84.425D) by $29,896, and the COVID -19 ARP Elementary and Secondary School Emergency Relief (ARP ESSER) Fund (84.425U) by $5,647. Recommendation : We recommend that the School's accountant review and become familiar with Uniform Guidance and CFR 200 requirements to assist with including the accurate expenditure information in the Schedule. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. View of responsible officials : See attached corrective action plan.
Finding 2023-001 Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition : The Schedule of Expenditures of Federal Awards (SEFA) was overstated by $42,585. Cause : The School included depreciation expense within amounts reported on the SEFA which is not an allowable cost under Uniform Guidance. Effect : An audit adjustment was made to reduce the reported amount on the SEFA for the Child Nutrition Cluster (10.553, 10.555) by $5,988, the Title I, Part A grant (84.010A) by $378, the Student Support and Academic Enrichment Program - Title IV (84.424) by $581, Charter Schools Grant (84.282D) by $95, COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund (84.425D) by $29,896, and the COVID -19 ARP Elementary and Secondary School Emergency Relief (ARP ESSER) Fund (84.425U) by $5,647. Recommendation : We recommend that the School's accountant review and become familiar with Uniform Guidance and CFR 200 requirements to assist with including the accurate expenditure information in the Schedule. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. View of responsible officials : See attached corrective action plan.
Finding 2023-001 Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition : The Schedule of Expenditures of Federal Awards (SEFA) was overstated by $42,585. Cause : The School included depreciation expense within amounts reported on the SEFA which is not an allowable cost under Uniform Guidance. Effect : An audit adjustment was made to reduce the reported amount on the SEFA for the Child Nutrition Cluster (10.553, 10.555) by $5,988, the Title I, Part A grant (84.010A) by $378, the Student Support and Academic Enrichment Program - Title IV (84.424) by $581, Charter Schools Grant (84.282D) by $95, COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund (84.425D) by $29,896, and the COVID -19 ARP Elementary and Secondary School Emergency Relief (ARP ESSER) Fund (84.425U) by $5,647. Recommendation : We recommend that the School's accountant review and become familiar with Uniform Guidance and CFR 200 requirements to assist with including the accurate expenditure information in the Schedule. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. View of responsible officials : See attached corrective action plan.
Finding 2023-001 Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition : The Schedule of Expenditures of Federal Awards (SEFA) was overstated by $42,585. Cause : The School included depreciation expense within amounts reported on the SEFA which is not an allowable cost under Uniform Guidance. Effect : An audit adjustment was made to reduce the reported amount on the SEFA for the Child Nutrition Cluster (10.553, 10.555) by $5,988, the Title I, Part A grant (84.010A) by $378, the Student Support and Academic Enrichment Program - Title IV (84.424) by $581, Charter Schools Grant (84.282D) by $95, COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund (84.425D) by $29,896, and the COVID -19 ARP Elementary and Secondary School Emergency Relief (ARP ESSER) Fund (84.425U) by $5,647. Recommendation : We recommend that the School's accountant review and become familiar with Uniform Guidance and CFR 200 requirements to assist with including the accurate expenditure information in the Schedule. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. View of responsible officials : See attached corrective action plan.
Finding 2023-001 Criteria : According to 2 CFR Subpart F Section 200.510b, the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period that includes all amounts spent on federal programs during the reporting period. Condition : The Schedule of Expenditures of Federal Awards (SEFA) was overstated by $42,585. Cause : The School included depreciation expense within amounts reported on the SEFA which is not an allowable cost under Uniform Guidance. Effect : An audit adjustment was made to reduce the reported amount on the SEFA for the Child Nutrition Cluster (10.553, 10.555) by $5,988, the Title I, Part A grant (84.010A) by $378, the Student Support and Academic Enrichment Program - Title IV (84.424) by $581, Charter Schools Grant (84.282D) by $95, COVID-19 Elementary and Secondary School Emergency Relief (ESSER II) Fund (84.425D) by $29,896, and the COVID -19 ARP Elementary and Secondary School Emergency Relief (ARP ESSER) Fund (84.425U) by $5,647. Recommendation : We recommend that the School's accountant review and become familiar with Uniform Guidance and CFR 200 requirements to assist with including the accurate expenditure information in the Schedule. In addition, we recommend that the accountant reconcile federal award expenditures to the claims that were filed for the year. View of responsible officials : See attached corrective action plan.
Assistance Listing Number. Federal Agency, and Program Name - ALN 66.458, U.S. Environmental Protection Agency, Clean Water State Revolving Fund (CWSRF) ALN 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - ALN 21.027 - SLFRP0127, program year 2021 Pass-through Entity - ALN 66.458 - EGLE ALN 21.027-EGLE Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.510(b): The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was incomplete and inaccurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the City expended approximately $1.5 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. Adjustments to correct the SEFA were required as follows: - $69,880 of expenditures was removed from the SEFA provided to the auditors by the City related to ALN 66.458 - $295,000 of expenditures was added to the SEFA provided to the auditors by the City related to ALN 21.027 Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the errors had the following impact: - $69,880 of expenditures was removed from ALN 66.458; as a result, CWSRF was overstated. - $295,000 of expenditures was added to ALN 21.027; as a result, CSLFRF was understated, impacting major program determination. These errors have been corrected on the SEFA. Recommendation - The City should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. Views of Responsible Officials and Corrective Action Plan - We are implementing a procedure whereby the controller’s office receives copies of all contracts to ensure all reporting requirements are met and financial deliverables are completed according to the schedules.
Assistance Listing Number. Federal Agency, and Program Name - ALN 66.458, U.S. Environmental Protection Agency, Clean Water State Revolving Fund (CWSRF) ALN 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - ALN 21.027 - SLFRP0127, program year 2021 Pass-through Entity - ALN 66.458 - EGLE ALN 21.027-EGLE Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.510(b): The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was incomplete and inaccurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the City expended approximately $1.5 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. Adjustments to correct the SEFA were required as follows: - $69,880 of expenditures was removed from the SEFA provided to the auditors by the City related to ALN 66.458 - $295,000 of expenditures was added to the SEFA provided to the auditors by the City related to ALN 21.027 Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the errors had the following impact: - $69,880 of expenditures was removed from ALN 66.458; as a result, CWSRF was overstated. - $295,000 of expenditures was added to ALN 21.027; as a result, CSLFRF was understated, impacting major program determination. These errors have been corrected on the SEFA. Recommendation - The City should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. Views of Responsible Officials and Corrective Action Plan - We are implementing a procedure whereby the controller’s office receives copies of all contracts to ensure all reporting requirements are met and financial deliverables are completed according to the schedules.
Assistance Listing Number. Federal Agency, and Program Name - ALN 66.458, U.S. Environmental Protection Agency, Clean Water State Revolving Fund (CWSRF) ALN 21.027, U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Federal Award Identification Number and Year - ALN 21.027 - SLFRP0127, program year 2021 Pass-through Entity - ALN 66.458 - EGLE ALN 21.027-EGLE Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.510(b): The auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended determined in accordance with § 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass-through entities to make the schedule easier to use. Condition - The schedule of expenditures of federal awards (SEFA) was incomplete and inaccurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - In fiscal year 2023, the City expended approximately $1.5 million of federal funding. The funding was received by various departments within the City from several federal and nonfederal entities. The City accumulates the financial data and other required information to complete the SEFA. Adjustments to correct the SEFA were required as follows: - $69,880 of expenditures was removed from the SEFA provided to the auditors by the City related to ALN 66.458 - $295,000 of expenditures was added to the SEFA provided to the auditors by the City related to ALN 21.027 Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate, and, as a result, the errors had the following impact: - $69,880 of expenditures was removed from ALN 66.458; as a result, CWSRF was overstated. - $295,000 of expenditures was added to ALN 21.027; as a result, CSLFRF was understated, impacting major program determination. These errors have been corrected on the SEFA. Recommendation - The City should implement a process to ensure the SEFA is complete and accurate by thoroughly reviewing agreements for grants received and reconciling the SEFA to a final trial balance prior to the start of the audit. Views of Responsible Officials and Corrective Action Plan - We are implementing a procedure whereby the controller’s office receives copies of all contracts to ensure all reporting requirements are met and financial deliverables are completed according to the schedules.
2023–012 REPORTING - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Federal Program Information: Federal Agency and Program Name Assistance Listing # U.S. Department of the Interior Abandoned Mine Land Reclamation (AMLR) Grants 15.252, Grant Award S16AF20058, Grant Award S18AF20000, Grant Award S19AF20000, Grant Award S19AF20020. Grant Award S20AF20008, Grant Award S20AF20038, Grant Award S20AF20094, Grant Award S21AF10040, Grant Award S22AF00013, Grant Award S22AF00039, Grant Award S23AF00013, Grant Award S23AF00059, Grant Award S23AF00107 Criteria or specific requirement (including statutory, regulatory or other citation): 2 CFR 200.303 requires that a 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 and 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: The West Virginia Department of Environmental Protection (the Department)’s internal controls are not adequate to ensure the Schedule of Expenditures of Federal Awards (SEFA) accurately reports all federal assistance. The Department’s SEFA for fiscal year 2023 under the Abandoned Mine Land Reclamation (AMLR) Grants program excluded indirect costs preliminary SEFA. Cause: The internal controls over the SEFA reporting processes were not operating effectively to ensure the SEFA included indirect costs. Effect or Potential Effect: The Department is not properly reporting their federal expenditures and major programs may not be appropriately identified. Questioned Costs: N/A Context: Total indirect costs for fiscal 2023, totaling $1,592,074, were incorrectly excluded from the SEFA. Management corrected the final SEFA. Total federal expenditures for the AMLR Grants program were $31,223,217 for the year ended June 30, 2023. Identification as a Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the Department ensure staff responsible for the preparation of the SEFA be provided guidance on recording indirect expenses on the SEFA and the SEFA be reviewed and approved by supervising personnel. Views of Responsible Officials: Management concurs with the finding and has developed a plan to correct the finding.
Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.
Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.
Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.
Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.
Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.
Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.
Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.
Criteria or specific requirement: Entities receiving federal awards must identify in its accounts all federal awards expended and report those amounts on the Schedule of Expenditures of Federal Awards for the period the federal award was expensed. Specifically, in accordance with Uniform Administrative Requirements outlined in 2 CFR 200, the guidance states: Per 2 CFR 200.502, The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Per 2 CFR 200.303, entities must establish and maintain internal controls which provide reasonable assurance that federal award expenditures are in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In addition, per 2 CFR 200.510, the Schedule of Expenditures of Federal Awards (SEFA) must be prepared to reflect the awards for the period covered by the auditee’s financial statements. Lastly, section 2 CFR 200.510 states that for costs to be allowable, they should be determined in accordance with generally accepted accounting principles (with exceptions provided in that part). Condition: The University’s year-end cutoff controls allowed for certain costs from Fiscal Year 2022 to not be reported in the Fiscal Year 2022 SEFA but rather reported in the Fiscal Year 2023 SEFA. Context: During our testing of 40 payroll transactions, we found one instance of 2022 fringe benefits being charged to a federal program in 2023. In addition, during our testing of 40 general disbursements transactions, we identified four instances of 2022 costs being charged to federal programs in 2023. Questioned costs: Known amounts of 2022 costs included in the 2023 SEFA was $3,214. (ALNs: 47.041, 47.083, 93.866, and 10.310 Award Numbers: 1663642, 1757324, R01AG059923, and 2022-67020-36410) Cause: Per the University, the cause for the five exceptions were due to: The one payroll exception was due to the 2021-2022 Human Capital Management (HCM) implementation and the issues that implementation brought about. As disclosed in a direct communication with the University’s cognizant agency, the initial custom software used for the allocation of fringe benefit costs did not work appropriately. As a result, throughout 2022, the University dedicated significant resources to address the HCM shortcomings. Then, in 2023, various corrections were made (again, as disclosed to the cognizant agency.) This sample was one of those costs that was identified as not properly being allocated to the federal program in the prior year; thus, was charged to the federal government in the current fiscal year. Three of the four general disbursement exceptions related to the University’s procurement card accrual policy. Currently, the University’s accrues for procurement card purchases through June 23, which leaves seven days of activity that flows into the next fiscal year. Three of our samples relate to procurement card charges incurred during these seven days. The last of the four general disbursements that related to a prior year but reported in the Fiscal Year 2023 was due to a staffing issue. A key employee responsible for monitoring specific departmental charges fell ill and was out for a period of time. Upon the employee’s return, the employee spent time analyzing charges and identified the cost that should have been recorded as a federal charge in the prior year; thus, then charged the federal agency in Fiscal Year 2023. Effect: The University was out of compliance as it relates to identifying and reporting federal costs in the period incurred. Repeat finding: No Recommendation: We recommend the University evaluate its cutoff procedures to ensure federal costs are identified and reported in the correct fiscal year. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.