Finding 2023-003 - Material Weakness in Internal Control over Compliance and Material Noncompliance (Qualified Opinion) - Inadequate Tracking of Expenditures and Retention of Documentation: Activities Allowed or Unallowed: Allowable Costs/Cost Principles and Reporting (A/B/L) for Assistance Listing Number 19.510 and 93.567 Criteria: The Code of Federal Regulations (CFR) Section 200.510(b) states in part, “The auditee must also prepare a schedule of federal expenditures for the period covered by the auditee’s consolidated financial statements which must include the total Federal awards expended as determined in accordance with 200.502.” Also, in accordance with CFR Section 200.302(b) - Financial Management, the auditees financial management system must provide 1) identification of all federal awards received and expended; 2) accurate, current, and complete disclosure of the financial results of each federal award or program; 3) records that identify adequately the source and application of funds for federally‐funded activities; 4) effective control over, and accountability for, all funds, property, and other assets; 5) comparison of expenditures with budget amounts for each Federal award; 6) written procedures to implement the requirements of section 200.305 and; 7) written procedures for determining the allowability of costs in accordance with Subpart E and the terms and conditions of the Federal award. Recipients of federal awards must submit accurate, complete and timely financial and performance reports. The Organization should have internal controls designed to ensure compliance with those provisions. The Organization should retain sufficient documentation such as invoice and allocation support for expenditures to retain documentation for audit purposes. Condition: During detail testing of expenditures, it was noted that the Organization did not maintain adequate documentation to support how certain costs were allocated to the federal program. Several transactions lacked sufficient detail, such as invoice or expense reimbursement form. Several expenditures selected for testing did not obtain sufficient approval by an individual at the Organization. It was noted that quarterly reports provided to the federal program were not reviewed by an individual at the Organization prior to submission to ensure accurate report of expenditures. Cause: The Organization does not have an adequate system in place to ensure quarterly reports have sufficient supporting documentation, proper approval/review, and accurate reporting prior to submission. Responsibilities for expenditure tracking were not clearly assigned, and there was no formal review process in place. The Organization is not following their Document Retention Policy. Effect: The effect of this condition increases the possibility that quarterly financial reports are misstated or inaccurate and increase the risk of noncompliance with federal requirements. The effect of this condition also increases the risk that expenditures are unallowable per the grant, federal regulations, or cost principles due to the insufficient support of proper approval retained. Questioned costs: None Repeat Finding: Yes - 2022-004 Recommendation: Policies and procedures should be in place to ensure quarterly financial reports are properly supported, accurately reported, and adequately approved and reviewed. A formal review process should be established to ensure compliance. The Organization should following the Document Retention Policy that was put in place and required by law. Views of Responsible Officials: Management agrees with this finding and their response is included in the Corrective Action Plan.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
FINDING REFERENCE NUMBER 2023-047 (See Finding Reference Number 2023-019) FEDERAL PROGRAM ALL FEDERAL PROGRAMS ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AWARD NUMBER ALL AWARDS COMPLIANCE REQUIREMENT REPORTING – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TYPE OF FINDING MATERIAL NONCOMPLIANCE AND MATERIAL WEAKNESS CRITERIA 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the ALN number or other identifying number when the ALN information is not available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. STATEMENT OF CONDITION During our audit procedures of the Schedule of Expenditures of Federal Awards (SEFA) prepared by the PRDF, we noted significant misstatements pertaining to the program and expenses listed in the PRDF's SEFA throughout our audit procedures. • The expenditures for some Federal programs were not accurately reported. To reconcile the correct amounts contained in the SEFA with the audited financial accounts, the PRDF suggested and posted adjustments. • The PRDF Management does not have an adequate internal control system in place to quickly detect and accurately document the expenditures incurred under each Federal award programs. This led to delays and errors in the amounts initially submitted for the SEFA. • Internal controls over the Federal award data entered the Financial Statement through the PRIFAS, which provided the PRDF’s SEFA and other financial reports, had not been put in place by the PRDF. The SEFA that was submitted for audit procedures contained the following mistakes because of inadequate internal controls: • There are no safeguards in place to keep an accurate and comprehensive list of Notice of Agreements (NOAs). As a result, the different versions received of the SEFA amounts and identification of the programs were reported in an incomplete or erroneous manner. • Expenditures related to COVID-19 appropriations for different Federal programs were not separately disclosed in the SEFA. • Initially, $27,371,670 in expenditures for the Payment to Territories – Adult program (ALN 93.560) was recorded under the Temporary Assistance for Needy Families (TANF) (ALN 93.558). • Due to transactions that were not recorded in PRIFAS, the Social Services Block Grant (ALN 93.667) program expenditures were understated by $7,132,636. Without an appropriate review procedure in place to identify and permit the rectification of errors prior to submission, the ADFAN Finance Department recorded this transactions as encumbrances. PERSPECTIVE INFORMATION The PRDF failed to identify properly in its records and/or accounting records the Federal grants that they received and expended during the fiscal year, this cause that when the PRDF prepared the SEFA with the financial statement and for audit purposes the SEFA was incomplete and misstated. STATEMENT OF CAUSE The PRDF failed to identify the Federal grants expended during the fiscal year and to keep records of the transactions related to the Federal programs in order to properly identify the Federal programs and transactions when the SEFA is prepared causing the preparation of an incomplete and misstated SEFA. POSSIBLE ASSERTED EFFECT The PRDF may fail to include all Federal programs and total expenditures in the SEFA causing misstatements in the SEFA submitted to Auditors. It also leads to an inaccurate Major Program Determination multiple times made by the auditors, affecting the execution of the Single Audit in a reasonable time. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend the PRDF to maintain adequate records related to the Federal programs in order to properly identify the Federal programs/transactions when the SEFA is prepared. Once a Federal award is granted or received, the information must be shared with all personnel involved in the financial statement and SEFA preparation to provide assurance that all required program activities / expenditures are included on the SEFA. In addition, the PRDF must perform a regular fiscal monitoring over the Federal programs transactions in order to provide reasonable assurance that all Federal programs/transactions are properly recorded and included on the SEFA.
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards 2 CFR § 200.510(b) states, in part, that the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a) List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b) For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c) Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d) Include the total amount provided to subrecipients from each Federal program. e) For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f) Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414. The School District did prepare a Schedule of Expenditures of Federal Awards; however, total federal expenditures were understated by $675,306. Adjustments were made to the Schedule of Expenditures of Federal Awards. Inaccurate completion of the Schedule of Expenditures of Federal Awards could lead to inaccurate reporting of federal expenditures by the School District and could jeopardize future federal funding. We recommend the School District review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided. Officials' Response: See Corrective Action Plan
Condition: During our review and reconciliation of the Schedule of Expenditures of Federal Awards (SEFA) as initially prepared by the County, we identified federal programs that were not listed accurately which resulted in federal expenditures being overstated stated by $929,420 • Expenditures reported on the SEFA for ALN 16.607 - Bulletproof Vest Partnership Program were $0. Actual federal expenditures obtained from the County’s records confirm $17,235 expended for a variance of ($17,235). • Expenditures reported on the SEFA for ALN 16.554 - National Criminal History Improvement Program (NCHIP) were $0. Actual federal expenditures obtained from the County’s records confirm $1,788 expended for a variance of ($1,788). • Expenditures reported on the SEFA for ALN 21.019 - Coronavirus Relief Fund were $1,100,510. Actual federal expenditures obtained from the County’s records confirm $0 expended for a variance of $1,100,510. • Expenditures reported on the SEFA for ALN 97.036 - Disaster Grants - Public Assistance (Presidentially Declared Disasters) - DR-4530 were $0. Actual federal expenditures obtained from the County’s records confirm $144,826 expended for a variance of ($144,826). • Expenditures reported on the SEFA for ALN 97.036 - Disaster Grants - Public Assistance (Presidentially Declared Disasters) - DR-4530 were $0. Actual federal expenditures obtained from the County’s records confirm $7,241 expended for a variance of ($7,241). Additionally, the County failed to present $4,199,136 in subrecipient expenditures on the SEFA for ALN 21.027 - Coronavirus State and Local Fiscal Recovery Funds. Cause of Condition: Policies and procedures have not been designed and implemented to ensure accurate reporting of expenditures for all federal awards. Effect of Condition: This condition resulted in inaccurate recording of the federal expenditures on the SEFA. Recommendation: OSAI recommends county officials and department heads gain an understanding of federal programs awarded to Rogers County. Internal control procedures should be designed and implemented to ensure accurate reporting of expenditures on the SEFA and to ensure compliance with federal requirements. The Board of County Commissioners (BOCC) should review and approve SEFA in an open meeting. Management Response: Board of County Commissioners: The Board of County Commissioners is responsible for the overall fiscal concerns of the county. See OKLA. STAT. Title 19, § 345. The Board of County Commissioners, with the cooperation and participation of all elected officials, reviews, develops and implements policies and procedures to create a strong internal control environment. Additionally, the Board of County Commissioners conducts meetings with all elected officials and officers responsible for the receipt and/or expenditure of county funds. These meetings address fiscal matters, including but not limited to, policy discussions and implementation, financial reports, budget oversight, SEFA reporting, and legal compliance. Policies and procedures, combined with fiscal oversight meetings, are intended to: 1) prevent or detect material misstatements in the financial statements; 2) prevent or detect fraud within the county; 3) increase communication between the Board of County Commissioners and those elected officials and officers responsible for the receipt and/or expenditure of public funds; 4) provide oversight over the fiscal concerns of the county; 5) identify and address risks related to financial reporting; 6) ensure the accuracy of Rogers County’s financial statements, Estimate of Needs, and the SEFA; and 7) ensure compliance with all applicable federal and state laws, regulations, and/or codes. The Board of County Commissioners, with the cooperation of all elected officials and officers responsible for the receipt or expenditure of federal funds, will evaluate the processes and procedures currently in place to ensure the accuracy of SEFA reporting and detect potential inaccuracies and/or misstatements. Criteria: 2 CFR § 200.303(a) Internal Controls reads as follows: 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2 CFR § 200.508(b) Auditee responsibilities reads as follows: The auditee must: Prepare appropriate financial statements, including the schedule of expenditures of Federal awards in accordance with §200.510 Financial statements. 2 CFR § 200.510(b) Financial statements reads, in part, as follows: Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. Further, GAO Standards – Section 2 – Objectives of an Entity - OV2.23 states in part: Compliance Objectives Management conducts activities in accordance with applicable laws and regulations. As part of specifying compliance objectives, the entity determines which laws and regulations apply to the entity. Management is expected to set objectives that incorporate these requirements.
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting. Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors. Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect. Effect: The SEFA initially overstated program expenditures by $113,201. Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding. Known Questioned Costs: None Likely Questioned Costs: None
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting. Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors. Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect. Effect: The SEFA initially overstated program expenditures by $113,201. Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding. Known Questioned Costs: None Likely Questioned Costs: None
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting. Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors. Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect. Effect: The SEFA initially overstated program expenditures by $113,201. Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding. Known Questioned Costs: None Likely Questioned Costs: None
Internal Control Impact: Materail weakness. Repeat Finding: No. Questioned Costs: No. Criteria: 2 CFR section 200.510(b) requires the auditee to prepare a Schedule of Expenditures of Federal Awards (SEFA) that must contain all federal awards expended during the period. 2 CFR section 200.502 requires proper tracking and accounting of federal expenditures incurred under the same basis of accounting as the basic financial statements to ensure proper cutoff and reporting. Condition: The School did not adequately track its expenditures of federal awards and did not prepare a complete SEFA as of the year end. Cause: The School did not have an adequate process to track expenditures of federal awards. This resulted in the School not being aware that they had expended more than $750,000 of federal awards during the year and would be subject to the Uniform Guidance. Effect: Failure to adequately track expenditures of federal awards could result in the SEFA being prepared inaccurately or in an untimely manner. Recommendation: Marshall Jones recommends that the School establish a process to track the expenditures of federal awards during the year. This will help the School to be aware of crossing the Uniform Guidance threshold, enabling the School to prepare the SEFA accurately and timely. Views of Responsible Officials: Management of the School concurs with the finding. Please refer to the Corrective Action Plan.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
2023-003 Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: All Title: All CFDA number: All Award year and number: 2021-2022 and 2022-2023 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Expenditures should include only those which are both allowable and within the grant award. Grant reimbursement requests should be done monthly. Condition: The initial information provided for the audit was unreconciled and contained overspending in several grant funds that could not be requested due to grant limitations. Many funds included in the SEFA had to be adjusted, some by material amounts to bring expenditures down to requestable levels, and during the process, it was noted that at least one fund carried an accounts receivable balance which had not been requested. Layered in that balance was at least three years’ worth of unrequested funds causing District staff to have to work with the state to shift expenditures into the appropriate grant years to recover all amounts owed and spent by the District. Context: As part of our review of the SEFA, and during our testing over accounts receivable and revenues, Wipfli found that grant requests were often done once or twice a year rather than monthly, and amounts requested did not line up with accounts receivable as shown in the financial statements. Although there was no evidence of unallowable expenditures being charged to the funds, the fact that funds were over-expended and in excess of budget suggests that the budget is not driving expenditures and regular reconciliation and review is not happening. Questioned Costs: None Effect: The District staff and auditors had to spend additional time reviewing historical information and adjusting the classification of expenditures, often to the general fund, to keep grant funds in line with available grant amounts. This resulted in significant adjustments to the general fund for expenditures that were not likely budgeted in the current year. Cause: The District was not reconciling federal spending with available funding, requests for reimbursement were not timely, and the internal controls over review and spending do not appear to be functioning adequately. See also finding 2023-002. Repeat: No Auditor's Recommendation: Wipfli recommends continued training and timely requests for reimbursement for all applicable federal funds. In addition, regular review of budget and actual, district needs, and changes since the budget was set are integral to having an awareness of the funds and potential issues before they arise. By resetting the procedures of the District and completing these tasks, the reporting of the District will improve, and forward planning and preparation will improve. View of Responsible Official: The District will strive for monthly requests for reimbursement for all applicable federal funds, thus creating awareness of the funds and potential issues before they arise.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.
Internal Controls over Compliance and Other Matters Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA) – Other ALL FEDERAL PROGRAMS IDENTIFIED ON THE SEFA Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards (SEFA), “the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502, Basis for determining Federal awards expended. While the auditor is able to assist with SEFA preparation, management remains responsible for identifying all federal expenditures to enable the preparation of a complete and accurate SEFA. Condition: Management was unable to provide a complete listing of federal expenditures at the start of audit fieldwork. Cause: Internal controls were not in place to require a final review of the listing of federal expenditures by the Director of Finance prior to audit fieldwork when the listing was prepared by another staff person. Questioned Costs: None. Effect: By not having proper controls over SEFA preparation at the beginning of the audit, there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform Guidance, which could lead to an incorrect major program determination and a substandard single audit. Context: We requested that the Organization provide a list of all federal expenditures at the start of audit fieldwork. During the audit, we detected federal expenditures that were not identified by the Organization as federal. Additionally, the Organization identified federal expenditures during their review of the draft financial statements, which were previously not identified as federal. identified as federal. Identification of Repeat Finding: Not a repeat finding. Recommendation: We recommend that Minnesota Land Trust implement internal controls to ensure there is an adequate communication and review process in place to capture all federal awards expended at the correct amounts in accordance with the criteria above. Views of Responsible Officials and Corrective Action Plan: The Minnesota Land Trust has internal controls to ensure that federal expenditures are accurately identified and reviewed. We will add additional internal controls to ensure a complete listing of federal expenditures is easy to provide and that the listing is reviewed by the Finance Department prior to audit fieldwork.