MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-005 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the Academy prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the Academy did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The Academy’s SEFA was understated by $158,815 in federal expenditures related to the Emergency Connectivity Fund federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $158,815 of $1,308,178 was initially not reported. Cause – This was an oversight by academy personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the Academy review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The Academy agrees with the finding. The Academy has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-005 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the Academy prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the Academy did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The Academy’s SEFA was understated by $158,815 in federal expenditures related to the Emergency Connectivity Fund federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $158,815 of $1,308,178 was initially not reported. Cause – This was an oversight by academy personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the Academy review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The Academy agrees with the finding. The Academy has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-005 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the Academy prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the Academy did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The Academy’s SEFA was understated by $158,815 in federal expenditures related to the Emergency Connectivity Fund federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $158,815 of $1,308,178 was initially not reported. Cause – This was an oversight by academy personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the Academy review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The Academy agrees with the finding. The Academy has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-005 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the Academy prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the Academy did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The Academy’s SEFA was understated by $158,815 in federal expenditures related to the Emergency Connectivity Fund federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $158,815 of $1,308,178 was initially not reported. Cause – This was an oversight by academy personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the Academy review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The Academy agrees with the finding. The Academy has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-005 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the Academy prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the Academy did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The Academy’s SEFA was understated by $158,815 in federal expenditures related to the Emergency Connectivity Fund federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $158,815 of $1,308,178 was initially not reported. Cause – This was an oversight by academy personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the Academy review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The Academy agrees with the finding. The Academy has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-005 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the Academy prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the Academy did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The Academy’s SEFA was understated by $158,815 in federal expenditures related to the Emergency Connectivity Fund federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $158,815 of $1,308,178 was initially not reported. Cause – This was an oversight by academy personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the Academy review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The Academy agrees with the finding. The Academy has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-005 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the Academy prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the Academy did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The Academy’s SEFA was understated by $158,815 in federal expenditures related to the Emergency Connectivity Fund federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $158,815 of $1,308,178 was initially not reported. Cause – This was an oversight by academy personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the Academy review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The Academy agrees with the finding. The Academy has separately issued a Corrective Action Plan related to this finding.
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063, Federal Direct Student Loan Program ALN 84.268, Federal Supplemental Educational Opportunity Grant (SEOG) Program ALN 84.007, Federal Work Study (FWS) Program ALN 84.033, and Federal Perkins Loan Program ALN 84.038; TRIO Student Support Service (SSS) Grant Program ALN 84.042; and Corporation for National and Community Service AmeriCorps Vista Grant Program ALN 94.006 Federal Award Identification Number and Year - 2022-2023 Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of federal expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The SEFA provided did not include all expenditures of the FWS and TRIO SSS programs and no expenditures of the AmeriCorps Vista program. In addition, the SEFA did not include the correct outstanding Federal Perkins Loan Balance as of the beginning of the fiscal year. As a result, the SEFA was overstated by $1,220,928. In addition, we noted the SEFA was not fully reconciled to the related federal expenditures and grant revenue as of June 30, 2023 resulting in an overstatement of federal revenue of $209,446. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. The above errors have been corrected on the SEFA as of June 30, 2023. Recommendation - The College should implement a process to ensure that the SEFA is prepared timely and that it is complete, accurate, and reconciled to the related federal revenue and expenditures. The College should also ensure all federal grants are appropriately classified as federal within the general ledger. Views of Responsible Officials and Corrective Action Plan - The Albion College Business Office has established revised procedures for SEFA funds, in tandem with the Financial Aid Office, in which all Federal Awards and Grants will be reconciled on a quarterly basis, to be completed no later than the end of the first proceeding month of the quarter. The procedures create a dual- control process for the drawdown, recordation, and reporting of SEFA funds. Additionally, in FY24, the Perkins portfolio was divested. The Perkins Close- out will be part of the FY24 Single Audit.
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063, Federal Direct Student Loan Program ALN 84.268, Federal Supplemental Educational Opportunity Grant (SEOG) Program ALN 84.007, Federal Work Study (FWS) Program ALN 84.033, and Federal Perkins Loan Program ALN 84.038; TRIO Student Support Service (SSS) Grant Program ALN 84.042; and Corporation for National and Community Service AmeriCorps Vista Grant Program ALN 94.006 Federal Award Identification Number and Year - 2022-2023 Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of federal expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The SEFA provided did not include all expenditures of the FWS and TRIO SSS programs and no expenditures of the AmeriCorps Vista program. In addition, the SEFA did not include the correct outstanding Federal Perkins Loan Balance as of the beginning of the fiscal year. As a result, the SEFA was overstated by $1,220,928. In addition, we noted the SEFA was not fully reconciled to the related federal expenditures and grant revenue as of June 30, 2023 resulting in an overstatement of federal revenue of $209,446. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. The above errors have been corrected on the SEFA as of June 30, 2023. Recommendation - The College should implement a process to ensure that the SEFA is prepared timely and that it is complete, accurate, and reconciled to the related federal revenue and expenditures. The College should also ensure all federal grants are appropriately classified as federal within the general ledger. Views of Responsible Officials and Corrective Action Plan - The Albion College Business Office has established revised procedures for SEFA funds, in tandem with the Financial Aid Office, in which all Federal Awards and Grants will be reconciled on a quarterly basis, to be completed no later than the end of the first proceeding month of the quarter. The procedures create a dual- control process for the drawdown, recordation, and reporting of SEFA funds. Additionally, in FY24, the Perkins portfolio was divested. The Perkins Close- out will be part of the FY24 Single Audit.
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063, Federal Direct Student Loan Program ALN 84.268, Federal Supplemental Educational Opportunity Grant (SEOG) Program ALN 84.007, Federal Work Study (FWS) Program ALN 84.033, and Federal Perkins Loan Program ALN 84.038; TRIO Student Support Service (SSS) Grant Program ALN 84.042; and Corporation for National and Community Service AmeriCorps Vista Grant Program ALN 94.006 Federal Award Identification Number and Year - 2022-2023 Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of federal expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The SEFA provided did not include all expenditures of the FWS and TRIO SSS programs and no expenditures of the AmeriCorps Vista program. In addition, the SEFA did not include the correct outstanding Federal Perkins Loan Balance as of the beginning of the fiscal year. As a result, the SEFA was overstated by $1,220,928. In addition, we noted the SEFA was not fully reconciled to the related federal expenditures and grant revenue as of June 30, 2023 resulting in an overstatement of federal revenue of $209,446. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. The above errors have been corrected on the SEFA as of June 30, 2023. Recommendation - The College should implement a process to ensure that the SEFA is prepared timely and that it is complete, accurate, and reconciled to the related federal revenue and expenditures. The College should also ensure all federal grants are appropriately classified as federal within the general ledger. Views of Responsible Officials and Corrective Action Plan - The Albion College Business Office has established revised procedures for SEFA funds, in tandem with the Financial Aid Office, in which all Federal Awards and Grants will be reconciled on a quarterly basis, to be completed no later than the end of the first proceeding month of the quarter. The procedures create a dual- control process for the drawdown, recordation, and reporting of SEFA funds. Additionally, in FY24, the Perkins portfolio was divested. The Perkins Close- out will be part of the FY24 Single Audit.
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063, Federal Direct Student Loan Program ALN 84.268, Federal Supplemental Educational Opportunity Grant (SEOG) Program ALN 84.007, Federal Work Study (FWS) Program ALN 84.033, and Federal Perkins Loan Program ALN 84.038; TRIO Student Support Service (SSS) Grant Program ALN 84.042; and Corporation for National and Community Service AmeriCorps Vista Grant Program ALN 94.006 Federal Award Identification Number and Year - 2022-2023 Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of federal expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The SEFA provided did not include all expenditures of the FWS and TRIO SSS programs and no expenditures of the AmeriCorps Vista program. In addition, the SEFA did not include the correct outstanding Federal Perkins Loan Balance as of the beginning of the fiscal year. As a result, the SEFA was overstated by $1,220,928. In addition, we noted the SEFA was not fully reconciled to the related federal expenditures and grant revenue as of June 30, 2023 resulting in an overstatement of federal revenue of $209,446. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. The above errors have been corrected on the SEFA as of June 30, 2023. Recommendation - The College should implement a process to ensure that the SEFA is prepared timely and that it is complete, accurate, and reconciled to the related federal revenue and expenditures. The College should also ensure all federal grants are appropriately classified as federal within the general ledger. Views of Responsible Officials and Corrective Action Plan - The Albion College Business Office has established revised procedures for SEFA funds, in tandem with the Financial Aid Office, in which all Federal Awards and Grants will be reconciled on a quarterly basis, to be completed no later than the end of the first proceeding month of the quarter. The procedures create a dual- control process for the drawdown, recordation, and reporting of SEFA funds. Additionally, in FY24, the Perkins portfolio was divested. The Perkins Close- out will be part of the FY24 Single Audit.
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063, Federal Direct Student Loan Program ALN 84.268, Federal Supplemental Educational Opportunity Grant (SEOG) Program ALN 84.007, Federal Work Study (FWS) Program ALN 84.033, and Federal Perkins Loan Program ALN 84.038; TRIO Student Support Service (SSS) Grant Program ALN 84.042; and Corporation for National and Community Service AmeriCorps Vista Grant Program ALN 94.006 Federal Award Identification Number and Year - 2022-2023 Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of federal expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The SEFA provided did not include all expenditures of the FWS and TRIO SSS programs and no expenditures of the AmeriCorps Vista program. In addition, the SEFA did not include the correct outstanding Federal Perkins Loan Balance as of the beginning of the fiscal year. As a result, the SEFA was overstated by $1,220,928. In addition, we noted the SEFA was not fully reconciled to the related federal expenditures and grant revenue as of June 30, 2023 resulting in an overstatement of federal revenue of $209,446. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. The above errors have been corrected on the SEFA as of June 30, 2023. Recommendation - The College should implement a process to ensure that the SEFA is prepared timely and that it is complete, accurate, and reconciled to the related federal revenue and expenditures. The College should also ensure all federal grants are appropriately classified as federal within the general ledger. Views of Responsible Officials and Corrective Action Plan - The Albion College Business Office has established revised procedures for SEFA funds, in tandem with the Financial Aid Office, in which all Federal Awards and Grants will be reconciled on a quarterly basis, to be completed no later than the end of the first proceeding month of the quarter. The procedures create a dual- control process for the drawdown, recordation, and reporting of SEFA funds. Additionally, in FY24, the Perkins portfolio was divested. The Perkins Close- out will be part of the FY24 Single Audit.
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063, Federal Direct Student Loan Program ALN 84.268, Federal Supplemental Educational Opportunity Grant (SEOG) Program ALN 84.007, Federal Work Study (FWS) Program ALN 84.033, and Federal Perkins Loan Program ALN 84.038; TRIO Student Support Service (SSS) Grant Program ALN 84.042; and Corporation for National and Community Service AmeriCorps Vista Grant Program ALN 94.006 Federal Award Identification Number and Year - 2022-2023 Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of federal expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The SEFA provided did not include all expenditures of the FWS and TRIO SSS programs and no expenditures of the AmeriCorps Vista program. In addition, the SEFA did not include the correct outstanding Federal Perkins Loan Balance as of the beginning of the fiscal year. As a result, the SEFA was overstated by $1,220,928. In addition, we noted the SEFA was not fully reconciled to the related federal expenditures and grant revenue as of June 30, 2023 resulting in an overstatement of federal revenue of $209,446. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. The above errors have been corrected on the SEFA as of June 30, 2023. Recommendation - The College should implement a process to ensure that the SEFA is prepared timely and that it is complete, accurate, and reconciled to the related federal revenue and expenditures. The College should also ensure all federal grants are appropriately classified as federal within the general ledger. Views of Responsible Officials and Corrective Action Plan - The Albion College Business Office has established revised procedures for SEFA funds, in tandem with the Financial Aid Office, in which all Federal Awards and Grants will be reconciled on a quarterly basis, to be completed no later than the end of the first proceeding month of the quarter. The procedures create a dual- control process for the drawdown, recordation, and reporting of SEFA funds. Additionally, in FY24, the Perkins portfolio was divested. The Perkins Close- out will be part of the FY24 Single Audit.
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063, Federal Direct Student Loan Program ALN 84.268, Federal Supplemental Educational Opportunity Grant (SEOG) Program ALN 84.007, Federal Work Study (FWS) Program ALN 84.033, and Federal Perkins Loan Program ALN 84.038; TRIO Student Support Service (SSS) Grant Program ALN 84.042; and Corporation for National and Community Service AmeriCorps Vista Grant Program ALN 94.006 Federal Award Identification Number and Year - 2022-2023 Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.510(b) - The auditee must also prepare a schedule of federal expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502. Condition - The schedule of expenditures of federal awards (SEFA) was not complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The SEFA provided did not include all expenditures of the FWS and TRIO SSS programs and no expenditures of the AmeriCorps Vista program. In addition, the SEFA did not include the correct outstanding Federal Perkins Loan Balance as of the beginning of the fiscal year. As a result, the SEFA was overstated by $1,220,928. In addition, we noted the SEFA was not fully reconciled to the related federal expenditures and grant revenue as of June 30, 2023 resulting in an overstatement of federal revenue of $209,446. Cause and Effect - Controls in place did not ensure the SEFA was completed in a timely manner and that it was complete and accurate. The above errors have been corrected on the SEFA as of June 30, 2023. Recommendation - The College should implement a process to ensure that the SEFA is prepared timely and that it is complete, accurate, and reconciled to the related federal revenue and expenditures. The College should also ensure all federal grants are appropriately classified as federal within the general ledger. Views of Responsible Officials and Corrective Action Plan - The Albion College Business Office has established revised procedures for SEFA funds, in tandem with the Financial Aid Office, in which all Federal Awards and Grants will be reconciled on a quarterly basis, to be completed no later than the end of the first proceeding month of the quarter. The procedures create a dual- control process for the drawdown, recordation, and reporting of SEFA funds. Additionally, in FY24, the Perkins portfolio was divested. The Perkins Close- out will be part of the FY24 Single Audit.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2023-003 Reporting Compliance Requirement Criteria – 2 CFR § 200.510 requires that the School prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2023, which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. Management is responsible for establishing and maintaining effective internal controls over compliance with requirements applicable to federal programs, including separately tracking federal expenditures within the finance system to provide for accurate preparation of the SEFA. Condition – During our audit, we noted the School did not have sufficient controls in place to ensure completeness of the SEFA and compliance with this requirement. The School’s SEFA was understated by $507,980 in federal expenditures related to the Comprehensive Literacy Development federal program. Questioned Costs – Not applicable. Context – On the June 30, 2023 SEFA, $507,980 of $2,047,040 was initially not reported. Cause – This was an oversight by school personnel. Repeat Finding – This is a current year finding. Effect – An incomplete SEFA could result in incorrect major program determination and could be seen as a violation of federal award agreements. Recommendation – We recommend that the School review its internal control procedures over reporting and verify completeness of expenditures reported on the SEFA in the future. View of Responsible Official and Planned Corrective Actions – The School agrees with the finding. The School has separately issued a Corrective Action Plan related to this finding.
Criteria: “A non-Federal entity that expends $750,000 or more in Federal awards during the non-Federal entity's fiscal year must have a single or program-specific audit conducted for that year in accordance with the provisions of the Uniform Guidance Part 2 CFR section 200.50 (a). In order to accomplish this, “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” per Part 2 CFR section 200.510 (b) of the Uniform Guidance. This guidance includes the requirement that the SEFA include the Assistance Listing Number (ALN) for each grant award included in the schedule . Condition: The amounts recorded as federal expenditures on the SEFA were not based on expenditures. The amounts recorded as expenditures and recognized as revenues were based on budget billings. Cause: Prior management lacked an understanding of what should be considered a grant (versus a contract) and how expenditures should be determined. Effect: The SEFA was not prepared correctly, which could have a direct and material effect on allowable costs, the financial statements, and annual audit. Questioned Costs: Expenditures on the SEFA are recorded on an incorrect basis and per finding 2023-003, were not properly supported. The major program, ALN 84.027 reported expenditures of $840,000. Although not tested as a major program, we determined for the same reason noted in this finding that the other federal reported expenditures on the SEFA are also considered questioned cost, totaling $508,600. Context: Federal programs and expenditures are not recognized consistent with the Uniform Guidance. Identification of Repeat Finding: 2020-001, 2021-001, 2022-001 Recommendation: We recommend that management develop policies and procedures to ensure all allowable grant expenditures are included on the SEFA and are accumulated, and recognized on the appropriate basis.
“A non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single or program-specific audit conducted for that year in accordance with the provisions of the Uniform Guidance Part 2 CFR section 200.50 (a). In order to accomplish this, “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” per Part 2 CFR section 200.510 (b) of the Uniform Guidance. As noted in 2 CFR 200.303 – Internal Control, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The 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 of the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Community Council was not able to provide detail of expenditures recorded on the SEFA to facilitate sampling and testing. For most awards there were no invoices or other required audit evidence and required reporting of costs was not maintained. Cause: No detail of expenditures or supporting grant documents were maintained. Effect: Noncompliance with Federal regulations. Questioned Costs: See questioned cost indicated in finding 2023-001. Context: As part of the single audit testing of allowable cost included on the SEFA, we were unable to determine compliance due to the lack of records. Identification of Repeat Finding: 2020-003, 2021-003, 2022-003 Recommendation: We recommend that management develop policies and procedures to ensure that grant expenditures are appropriately captured based on federal regulations and are properly supported.
2023-011 OA Statewide SEFA DOA controls and procedures related to the preparation of the statewide Schedule of Expenditures of Federal Awards (SEFA) were not sufficient; and as a result, a complete and accurate SEFA was not prepared timely for the year ended June 30, 2023. The statewide SEFA reported the state expended approximately $20.9 billion in federal funds in the year ended June 30, 2023. Each state agency and office prepares and submits a SEFA survey to the DOA and the DOA compiles the statewide SEFA. The SEFA reports total expenditures and amounts passed through to subrecipients for each federal program, and is supported by the Notes to the SEFA (Notes). The SEFA is a key component of the annual Single Audit, which is required to be completed no later than 9 months after fiscal year-end (March 31, 2024, for the year ended June 30, 2023). In addition to providing an opinion on the SEFA, the State Auditor's Office uses the SEFA for many critical Single Audit tasks including determining and identifying Type A and large Type B thresholds and programs, determining major federal programs, and ensuring required audit procedures are performed. Untimely SEFA The year ended June 30, 2023, SEFA was not prepared by the DOA until February 28, 2024, 8 months after fiscal year end and 1 month before the Single Audit reporting deadline. Because the DOA prepares the SEFA after the State of Missouri Annual Comprehensive Financial Report (ACFR) draft has been prepared, and the fiscal year 2023 ACFR draft was prepared over 7 months after fiscal year end, the fiscal year 2023 preparation of the SEFA was delayed. The delayed preparation of the SEFA negatively impacted the completion of various Single Audit tasks, and contributed to the delay in issuance of the fiscal year 2023 Single Audit. The DOA has indicated that staff turnover and increased workload in other areas contributed to the delayed SEFA. Regulation 2 CFR 200.512 requires the state to submit its Single Audit report to the Federal Audit Clearinghouse no later than 9 months after the fiscal year-end. SEFA errors The fiscal year ended June 30, 2023, SEFA and Notes included various errors and misstatements including: • The Emergency Solutions Grant Program (Assistance Listing No. 14.231) and the COVID-19 - Emergency Rental Assistance Program (Assistance Listing No. 21.023) were not included in the SEFA. Expenditures for these programs totaled $1,542,983 and $9,514,168, respectively. After we notified the DOA of these errors, the DOA revised the statewide SEFA. • The Unemployment Insurance program (Assistance Listing No. 17.225) expenditures reported in the SEFA were $7,059,661 more than the amount reported in Note 2 - Unemployment Insurance Expenditures. In addition, the Notes did not include the correct program name. After we notified the DOA of these errors, the DOA revised the statewide SEFA and the Notes. • Amounts shown in the "Amount Provided to Subrecipients" column for some programs were overstated because the DOA lacks procedures to ensure amounts transferred from one state agency to another state agency are not reported in this column. For example, the amount reported for the Child Care and Development Block Grant (Assistance Listing No. 93.575) was overstated by $19,486,185, which represents transfers from the Department of Social Services to the Department of Elementary and Secondary Education. Part 3-M-1 of the Compliance Supplement states, "Transfers of federal awards to another component of the same auditee under 2 CFR Part 200, Subpart F, do not constitute a subrecipient or contractor relationship." Since this error did not result in a material misstatement to the SEFA, no correction was made by the DOA. The errors occurred without detection due to (1) staff turnover, (2) inadequate documented procedures for preparing the SEFA, and (3) inadequate review procedures. Conclusions Strong internal control is necessary to ensure the SEFA is prepared timely, accurately, and in compliance with federal requirements. Regulation 2 CFR Section 200.510(b) requires the recipient of federal awards to prepare a SEFA including federal awards expended for each federal program. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish 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." Recommendation The OA through the DOA strengthen controls and procedures to prepare a timely and accurate statewide SEFA. Such procedures should provide for proper reporting of subrecipient amounts. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
2023-011 OA Statewide SEFA DOA controls and procedures related to the preparation of the statewide Schedule of Expenditures of Federal Awards (SEFA) were not sufficient; and as a result, a complete and accurate SEFA was not prepared timely for the year ended June 30, 2023. The statewide SEFA reported the state expended approximately $20.9 billion in federal funds in the year ended June 30, 2023. Each state agency and office prepares and submits a SEFA survey to the DOA and the DOA compiles the statewide SEFA. The SEFA reports total expenditures and amounts passed through to subrecipients for each federal program, and is supported by the Notes to the SEFA (Notes). The SEFA is a key component of the annual Single Audit, which is required to be completed no later than 9 months after fiscal year-end (March 31, 2024, for the year ended June 30, 2023). In addition to providing an opinion on the SEFA, the State Auditor's Office uses the SEFA for many critical Single Audit tasks including determining and identifying Type A and large Type B thresholds and programs, determining major federal programs, and ensuring required audit procedures are performed. Untimely SEFA The year ended June 30, 2023, SEFA was not prepared by the DOA until February 28, 2024, 8 months after fiscal year end and 1 month before the Single Audit reporting deadline. Because the DOA prepares the SEFA after the State of Missouri Annual Comprehensive Financial Report (ACFR) draft has been prepared, and the fiscal year 2023 ACFR draft was prepared over 7 months after fiscal year end, the fiscal year 2023 preparation of the SEFA was delayed. The delayed preparation of the SEFA negatively impacted the completion of various Single Audit tasks, and contributed to the delay in issuance of the fiscal year 2023 Single Audit. The DOA has indicated that staff turnover and increased workload in other areas contributed to the delayed SEFA. Regulation 2 CFR 200.512 requires the state to submit its Single Audit report to the Federal Audit Clearinghouse no later than 9 months after the fiscal year-end. SEFA errors The fiscal year ended June 30, 2023, SEFA and Notes included various errors and misstatements including: • The Emergency Solutions Grant Program (Assistance Listing No. 14.231) and the COVID-19 - Emergency Rental Assistance Program (Assistance Listing No. 21.023) were not included in the SEFA. Expenditures for these programs totaled $1,542,983 and $9,514,168, respectively. After we notified the DOA of these errors, the DOA revised the statewide SEFA. • The Unemployment Insurance program (Assistance Listing No. 17.225) expenditures reported in the SEFA were $7,059,661 more than the amount reported in Note 2 - Unemployment Insurance Expenditures. In addition, the Notes did not include the correct program name. After we notified the DOA of these errors, the DOA revised the statewide SEFA and the Notes. • Amounts shown in the "Amount Provided to Subrecipients" column for some programs were overstated because the DOA lacks procedures to ensure amounts transferred from one state agency to another state agency are not reported in this column. For example, the amount reported for the Child Care and Development Block Grant (Assistance Listing No. 93.575) was overstated by $19,486,185, which represents transfers from the Department of Social Services to the Department of Elementary and Secondary Education. Part 3-M-1 of the Compliance Supplement states, "Transfers of federal awards to another component of the same auditee under 2 CFR Part 200, Subpart F, do not constitute a subrecipient or contractor relationship." Since this error did not result in a material misstatement to the SEFA, no correction was made by the DOA. The errors occurred without detection due to (1) staff turnover, (2) inadequate documented procedures for preparing the SEFA, and (3) inadequate review procedures. Conclusions Strong internal control is necessary to ensure the SEFA is prepared timely, accurately, and in compliance with federal requirements. Regulation 2 CFR Section 200.510(b) requires the recipient of federal awards to prepare a SEFA including federal awards expended for each federal program. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish 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." Recommendation The OA through the DOA strengthen controls and procedures to prepare a timely and accurate statewide SEFA. Such procedures should provide for proper reporting of subrecipient amounts. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
2023-011 OA Statewide SEFA DOA controls and procedures related to the preparation of the statewide Schedule of Expenditures of Federal Awards (SEFA) were not sufficient; and as a result, a complete and accurate SEFA was not prepared timely for the year ended June 30, 2023. The statewide SEFA reported the state expended approximately $20.9 billion in federal funds in the year ended June 30, 2023. Each state agency and office prepares and submits a SEFA survey to the DOA and the DOA compiles the statewide SEFA. The SEFA reports total expenditures and amounts passed through to subrecipients for each federal program, and is supported by the Notes to the SEFA (Notes). The SEFA is a key component of the annual Single Audit, which is required to be completed no later than 9 months after fiscal year-end (March 31, 2024, for the year ended June 30, 2023). In addition to providing an opinion on the SEFA, the State Auditor's Office uses the SEFA for many critical Single Audit tasks including determining and identifying Type A and large Type B thresholds and programs, determining major federal programs, and ensuring required audit procedures are performed. Untimely SEFA The year ended June 30, 2023, SEFA was not prepared by the DOA until February 28, 2024, 8 months after fiscal year end and 1 month before the Single Audit reporting deadline. Because the DOA prepares the SEFA after the State of Missouri Annual Comprehensive Financial Report (ACFR) draft has been prepared, and the fiscal year 2023 ACFR draft was prepared over 7 months after fiscal year end, the fiscal year 2023 preparation of the SEFA was delayed. The delayed preparation of the SEFA negatively impacted the completion of various Single Audit tasks, and contributed to the delay in issuance of the fiscal year 2023 Single Audit. The DOA has indicated that staff turnover and increased workload in other areas contributed to the delayed SEFA. Regulation 2 CFR 200.512 requires the state to submit its Single Audit report to the Federal Audit Clearinghouse no later than 9 months after the fiscal year-end. SEFA errors The fiscal year ended June 30, 2023, SEFA and Notes included various errors and misstatements including: • The Emergency Solutions Grant Program (Assistance Listing No. 14.231) and the COVID-19 - Emergency Rental Assistance Program (Assistance Listing No. 21.023) were not included in the SEFA. Expenditures for these programs totaled $1,542,983 and $9,514,168, respectively. After we notified the DOA of these errors, the DOA revised the statewide SEFA. • The Unemployment Insurance program (Assistance Listing No. 17.225) expenditures reported in the SEFA were $7,059,661 more than the amount reported in Note 2 - Unemployment Insurance Expenditures. In addition, the Notes did not include the correct program name. After we notified the DOA of these errors, the DOA revised the statewide SEFA and the Notes. • Amounts shown in the "Amount Provided to Subrecipients" column for some programs were overstated because the DOA lacks procedures to ensure amounts transferred from one state agency to another state agency are not reported in this column. For example, the amount reported for the Child Care and Development Block Grant (Assistance Listing No. 93.575) was overstated by $19,486,185, which represents transfers from the Department of Social Services to the Department of Elementary and Secondary Education. Part 3-M-1 of the Compliance Supplement states, "Transfers of federal awards to another component of the same auditee under 2 CFR Part 200, Subpart F, do not constitute a subrecipient or contractor relationship." Since this error did not result in a material misstatement to the SEFA, no correction was made by the DOA. The errors occurred without detection due to (1) staff turnover, (2) inadequate documented procedures for preparing the SEFA, and (3) inadequate review procedures. Conclusions Strong internal control is necessary to ensure the SEFA is prepared timely, accurately, and in compliance with federal requirements. Regulation 2 CFR Section 200.510(b) requires the recipient of federal awards to prepare a SEFA including federal awards expended for each federal program. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish 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." Recommendation The OA through the DOA strengthen controls and procedures to prepare a timely and accurate statewide SEFA. Such procedures should provide for proper reporting of subrecipient amounts. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
2023-011 OA Statewide SEFA DOA controls and procedures related to the preparation of the statewide Schedule of Expenditures of Federal Awards (SEFA) were not sufficient; and as a result, a complete and accurate SEFA was not prepared timely for the year ended June 30, 2023. The statewide SEFA reported the state expended approximately $20.9 billion in federal funds in the year ended June 30, 2023. Each state agency and office prepares and submits a SEFA survey to the DOA and the DOA compiles the statewide SEFA. The SEFA reports total expenditures and amounts passed through to subrecipients for each federal program, and is supported by the Notes to the SEFA (Notes). The SEFA is a key component of the annual Single Audit, which is required to be completed no later than 9 months after fiscal year-end (March 31, 2024, for the year ended June 30, 2023). In addition to providing an opinion on the SEFA, the State Auditor's Office uses the SEFA for many critical Single Audit tasks including determining and identifying Type A and large Type B thresholds and programs, determining major federal programs, and ensuring required audit procedures are performed. Untimely SEFA The year ended June 30, 2023, SEFA was not prepared by the DOA until February 28, 2024, 8 months after fiscal year end and 1 month before the Single Audit reporting deadline. Because the DOA prepares the SEFA after the State of Missouri Annual Comprehensive Financial Report (ACFR) draft has been prepared, and the fiscal year 2023 ACFR draft was prepared over 7 months after fiscal year end, the fiscal year 2023 preparation of the SEFA was delayed. The delayed preparation of the SEFA negatively impacted the completion of various Single Audit tasks, and contributed to the delay in issuance of the fiscal year 2023 Single Audit. The DOA has indicated that staff turnover and increased workload in other areas contributed to the delayed SEFA. Regulation 2 CFR 200.512 requires the state to submit its Single Audit report to the Federal Audit Clearinghouse no later than 9 months after the fiscal year-end. SEFA errors The fiscal year ended June 30, 2023, SEFA and Notes included various errors and misstatements including: • The Emergency Solutions Grant Program (Assistance Listing No. 14.231) and the COVID-19 - Emergency Rental Assistance Program (Assistance Listing No. 21.023) were not included in the SEFA. Expenditures for these programs totaled $1,542,983 and $9,514,168, respectively. After we notified the DOA of these errors, the DOA revised the statewide SEFA. • The Unemployment Insurance program (Assistance Listing No. 17.225) expenditures reported in the SEFA were $7,059,661 more than the amount reported in Note 2 - Unemployment Insurance Expenditures. In addition, the Notes did not include the correct program name. After we notified the DOA of these errors, the DOA revised the statewide SEFA and the Notes. • Amounts shown in the "Amount Provided to Subrecipients" column for some programs were overstated because the DOA lacks procedures to ensure amounts transferred from one state agency to another state agency are not reported in this column. For example, the amount reported for the Child Care and Development Block Grant (Assistance Listing No. 93.575) was overstated by $19,486,185, which represents transfers from the Department of Social Services to the Department of Elementary and Secondary Education. Part 3-M-1 of the Compliance Supplement states, "Transfers of federal awards to another component of the same auditee under 2 CFR Part 200, Subpart F, do not constitute a subrecipient or contractor relationship." Since this error did not result in a material misstatement to the SEFA, no correction was made by the DOA. The errors occurred without detection due to (1) staff turnover, (2) inadequate documented procedures for preparing the SEFA, and (3) inadequate review procedures. Conclusions Strong internal control is necessary to ensure the SEFA is prepared timely, accurately, and in compliance with federal requirements. Regulation 2 CFR Section 200.510(b) requires the recipient of federal awards to prepare a SEFA including federal awards expended for each federal program. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish 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." Recommendation The OA through the DOA strengthen controls and procedures to prepare a timely and accurate statewide SEFA. Such procedures should provide for proper reporting of subrecipient amounts. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
2023-011 OA Statewide SEFA DOA controls and procedures related to the preparation of the statewide Schedule of Expenditures of Federal Awards (SEFA) were not sufficient; and as a result, a complete and accurate SEFA was not prepared timely for the year ended June 30, 2023. The statewide SEFA reported the state expended approximately $20.9 billion in federal funds in the year ended June 30, 2023. Each state agency and office prepares and submits a SEFA survey to the DOA and the DOA compiles the statewide SEFA. The SEFA reports total expenditures and amounts passed through to subrecipients for each federal program, and is supported by the Notes to the SEFA (Notes). The SEFA is a key component of the annual Single Audit, which is required to be completed no later than 9 months after fiscal year-end (March 31, 2024, for the year ended June 30, 2023). In addition to providing an opinion on the SEFA, the State Auditor's Office uses the SEFA for many critical Single Audit tasks including determining and identifying Type A and large Type B thresholds and programs, determining major federal programs, and ensuring required audit procedures are performed. Untimely SEFA The year ended June 30, 2023, SEFA was not prepared by the DOA until February 28, 2024, 8 months after fiscal year end and 1 month before the Single Audit reporting deadline. Because the DOA prepares the SEFA after the State of Missouri Annual Comprehensive Financial Report (ACFR) draft has been prepared, and the fiscal year 2023 ACFR draft was prepared over 7 months after fiscal year end, the fiscal year 2023 preparation of the SEFA was delayed. The delayed preparation of the SEFA negatively impacted the completion of various Single Audit tasks, and contributed to the delay in issuance of the fiscal year 2023 Single Audit. The DOA has indicated that staff turnover and increased workload in other areas contributed to the delayed SEFA. Regulation 2 CFR 200.512 requires the state to submit its Single Audit report to the Federal Audit Clearinghouse no later than 9 months after the fiscal year-end. SEFA errors The fiscal year ended June 30, 2023, SEFA and Notes included various errors and misstatements including: • The Emergency Solutions Grant Program (Assistance Listing No. 14.231) and the COVID-19 - Emergency Rental Assistance Program (Assistance Listing No. 21.023) were not included in the SEFA. Expenditures for these programs totaled $1,542,983 and $9,514,168, respectively. After we notified the DOA of these errors, the DOA revised the statewide SEFA. • The Unemployment Insurance program (Assistance Listing No. 17.225) expenditures reported in the SEFA were $7,059,661 more than the amount reported in Note 2 - Unemployment Insurance Expenditures. In addition, the Notes did not include the correct program name. After we notified the DOA of these errors, the DOA revised the statewide SEFA and the Notes. • Amounts shown in the "Amount Provided to Subrecipients" column for some programs were overstated because the DOA lacks procedures to ensure amounts transferred from one state agency to another state agency are not reported in this column. For example, the amount reported for the Child Care and Development Block Grant (Assistance Listing No. 93.575) was overstated by $19,486,185, which represents transfers from the Department of Social Services to the Department of Elementary and Secondary Education. Part 3-M-1 of the Compliance Supplement states, "Transfers of federal awards to another component of the same auditee under 2 CFR Part 200, Subpart F, do not constitute a subrecipient or contractor relationship." Since this error did not result in a material misstatement to the SEFA, no correction was made by the DOA. The errors occurred without detection due to (1) staff turnover, (2) inadequate documented procedures for preparing the SEFA, and (3) inadequate review procedures. Conclusions Strong internal control is necessary to ensure the SEFA is prepared timely, accurately, and in compliance with federal requirements. Regulation 2 CFR Section 200.510(b) requires the recipient of federal awards to prepare a SEFA including federal awards expended for each federal program. Regulation 2 CFR Section 200.303(a) requires the non-federal entity to "[e]stablish 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." Recommendation The OA through the DOA strengthen controls and procedures to prepare a timely and accurate statewide SEFA. Such procedures should provide for proper reporting of subrecipient amounts. Auditee's Response We agree with the auditor's finding. Our Corrective Action Plan includes our planned actions to address the finding.
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 66.468 Drinking Water State Revolving Fund Name of Federal Agency: Environmental Protection Agency Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was not presented for audit. The City was unaware that funds borrowed through Business Oregon were federally sourced. Cause: The loan documents that were provided to the City were modified and date back several years. No individual, including those employed by the City, project managers engaged by the City, and pass-through managers were apparently aware that the loan proceeds were from federal sources. Consequently, no internal controls were designed or implemented regarding accounting for or preparation of the SEFA. The City did not provide a reconciliation of the expenditures of federal awards with amounts reported on the City’s general ledger. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • No SEFA was originally presented for auditors. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: Yes 2022-002 Recommendation: We recommend that the City establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The City should provide appropriate training to staff who are assigned to prepare and review the SEFA. City’s Response: The City acknowledges the deficiencies. Corrective Action Plan: The City will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: City Manager
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8
Finding 2023-002 - Schedule of Expenditures of Federal Awards (Material Weakness) CFDA Title and Number 84.425 Education Stabilization Fund Name of Federal Agency: U.S. Department of Education CFDA Title and Number 10.555 National School Lunch Program cluster Name of Federal Agency: U.S. Department of Agriculture Compliance/Internal Control over Compliance: Auditee Responsibilities Criteria: CFR Part 200.508, CFR Part 200.510, Auditee Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual Federal awards by Federal Agency, including the total Federal awards expended, name of the pass-through entity, CFDA number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was presented for audit with values that were not reconciled with the general ledger. Cause: The District relied on individuals with insufficient training or support to prepare the SEFA and ensure that it was reconciled with general ledger amounts. District management did not have sufficient training or monitoring policies to recognize and correct the deficiency. Effect or Potential Effect: Expenditures of federal awards and not be detected and corrected. Because the Auditee’s SEFA was completed incorrectly, and not reconciled to the general ledger the SEFA was materially misstated, prior to auditors’ correction recommendations. Questioned Cost: No Context: Lack of adequate controls over the Schedule of Expenditures of Federal Awards and related accounting resulted in the following: • SEFA was originally presented for auditors with incorrect information. • No reconciliation between federal expenditures reported on the GL and the SEFA was presented. Repeat of a Prior-Year Finding: No Recommendation: We recommend that the District establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The District should provide appropriate training to staff who are assigned to prepare and review the SEFA. District’s Response: The District acknowledges the deficiencies. Corrective Action Plan: The District will establish policies and procedures to ensure that all Federal awards are identified and reported accurately on future SEFAs. Planned Implementation Date: October 1, 2024 Responsible Person: Director of Business Services, Yamhill County School District No. 8