2023-001 Program: CDBG - Entitlement Grants Cluster / Highway Planning and Construction / Nationally Significant Freight and Highway Project Funds Federal Financial Assistance Listing No.: 14.218 / 20.205 / 20.934 Federal Agency: U.S. Department of Housing and Urban Development / U.S. Department of Transportation Direct Award: U.S. Department of Housing and Urban Development Pass-through: California Department of Transportation in relation to the Highway Planning and Construction and Nationally Significant Freight and Highway Project Funds Award Year: Multiple Grant Award Number: Multiple Compliance Requirements: Other - Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of expenditures of Federal awards Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) states that the auditee (the City) must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total federal awards expended as determined in accordance with §200.502. In addition, §200.303 of the Uniform Guidance states that the City must establish and maintain effective internal control over the federal awards, including controls over the accuracy of program information and expenditure amounts. Condition: During our audit procedures performed over the SEFA and expenditures reported for the CDBG - Entitlement Grants Cluster, Highway Planning and Construction, and Nationally Significant Freight and Highway Project Funds, we noted the following: 1. The City did not properly identify the amount expended for the CDBG - Entitlement Grants Cluster, AL No. 14.218. The expenditures reported by the City were understated by $154,071. 2. The City did not properly identify the amount expended for the Highway Planning and Construction, AL No. 20.205. The expenditures reported by the City were overstated by $5,098,179. 3. The City did not properly classify the amount expended for the Nationally Significant Freight and Highway Project Funds, AL No. 20.934. The expenditures reported by the City were understated by $2,769,610. Cause: As a result, the City lacks adequate internal controls to ensure the SEFA is completely and accurately stated. Specifically, the City’s processes for recording and tracking expenditures of federal awards are not designed so that expenditures are identified when incurred and assigned to the correct program name or cluster in a complete and timely manner. Effect: The SEFA, as originally presented, was overstated by $2,174,498. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No sampling was used. Program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from the Prior Year(s): No. Recommendation: The City should establish policies and implement internal controls to ensure all federal expenditures are accurately tracked and reported on the SEFA. Personnel knowledgeable of federal expenditures should review amounts coded to federal programs for completeness and accuracy. The SEFA should be prepared and reviewed in a timely manner and reconciled to underlying records as well as the basic financial statements. View of Responsible Official and Planned Corrective Actions See separate corrective action plan.
2023-001 Program: CDBG - Entitlement Grants Cluster / Highway Planning and Construction / Nationally Significant Freight and Highway Project Funds Federal Financial Assistance Listing No.: 14.218 / 20.205 / 20.934 Federal Agency: U.S. Department of Housing and Urban Development / U.S. Department of Transportation Direct Award: U.S. Department of Housing and Urban Development Pass-through: California Department of Transportation in relation to the Highway Planning and Construction and Nationally Significant Freight and Highway Project Funds Award Year: Multiple Grant Award Number: Multiple Compliance Requirements: Other - Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of expenditures of Federal awards Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) states that the auditee (the City) must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total federal awards expended as determined in accordance with §200.502. In addition, §200.303 of the Uniform Guidance states that the City must establish and maintain effective internal control over the federal awards, including controls over the accuracy of program information and expenditure amounts. Condition: During our audit procedures performed over the SEFA and expenditures reported for the CDBG - Entitlement Grants Cluster, Highway Planning and Construction, and Nationally Significant Freight and Highway Project Funds, we noted the following: 1. The City did not properly identify the amount expended for the CDBG - Entitlement Grants Cluster, AL No. 14.218. The expenditures reported by the City were understated by $154,071. 2. The City did not properly identify the amount expended for the Highway Planning and Construction, AL No. 20.205. The expenditures reported by the City were overstated by $5,098,179. 3. The City did not properly classify the amount expended for the Nationally Significant Freight and Highway Project Funds, AL No. 20.934. The expenditures reported by the City were understated by $2,769,610. Cause: As a result, the City lacks adequate internal controls to ensure the SEFA is completely and accurately stated. Specifically, the City’s processes for recording and tracking expenditures of federal awards are not designed so that expenditures are identified when incurred and assigned to the correct program name or cluster in a complete and timely manner. Effect: The SEFA, as originally presented, was overstated by $2,174,498. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No sampling was used. Program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from the Prior Year(s): No. Recommendation: The City should establish policies and implement internal controls to ensure all federal expenditures are accurately tracked and reported on the SEFA. Personnel knowledgeable of federal expenditures should review amounts coded to federal programs for completeness and accuracy. The SEFA should be prepared and reviewed in a timely manner and reconciled to underlying records as well as the basic financial statements. View of Responsible Official and Planned Corrective Actions See separate corrective action plan.
2023-001 Program: CDBG - Entitlement Grants Cluster / Highway Planning and Construction / Nationally Significant Freight and Highway Project Funds Federal Financial Assistance Listing No.: 14.218 / 20.205 / 20.934 Federal Agency: U.S. Department of Housing and Urban Development / U.S. Department of Transportation Direct Award: U.S. Department of Housing and Urban Development Pass-through: California Department of Transportation in relation to the Highway Planning and Construction and Nationally Significant Freight and Highway Project Funds Award Year: Multiple Grant Award Number: Multiple Compliance Requirements: Other - Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of expenditures of Federal awards Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) states that the auditee (the City) must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total federal awards expended as determined in accordance with §200.502. In addition, §200.303 of the Uniform Guidance states that the City must establish and maintain effective internal control over the federal awards, including controls over the accuracy of program information and expenditure amounts. Condition: During our audit procedures performed over the SEFA and expenditures reported for the CDBG - Entitlement Grants Cluster, Highway Planning and Construction, and Nationally Significant Freight and Highway Project Funds, we noted the following: 1. The City did not properly identify the amount expended for the CDBG - Entitlement Grants Cluster, AL No. 14.218. The expenditures reported by the City were understated by $154,071. 2. The City did not properly identify the amount expended for the Highway Planning and Construction, AL No. 20.205. The expenditures reported by the City were overstated by $5,098,179. 3. The City did not properly classify the amount expended for the Nationally Significant Freight and Highway Project Funds, AL No. 20.934. The expenditures reported by the City were understated by $2,769,610. Cause: As a result, the City lacks adequate internal controls to ensure the SEFA is completely and accurately stated. Specifically, the City’s processes for recording and tracking expenditures of federal awards are not designed so that expenditures are identified when incurred and assigned to the correct program name or cluster in a complete and timely manner. Effect: The SEFA, as originally presented, was overstated by $2,174,498. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No sampling was used. Program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from the Prior Year(s): No. Recommendation: The City should establish policies and implement internal controls to ensure all federal expenditures are accurately tracked and reported on the SEFA. Personnel knowledgeable of federal expenditures should review amounts coded to federal programs for completeness and accuracy. The SEFA should be prepared and reviewed in a timely manner and reconciled to underlying records as well as the basic financial statements. View of Responsible Official and Planned Corrective Actions See separate corrective action plan.
2023-001 Program: CDBG - Entitlement Grants Cluster / Highway Planning and Construction / Nationally Significant Freight and Highway Project Funds Federal Financial Assistance Listing No.: 14.218 / 20.205 / 20.934 Federal Agency: U.S. Department of Housing and Urban Development / U.S. Department of Transportation Direct Award: U.S. Department of Housing and Urban Development Pass-through: California Department of Transportation in relation to the Highway Planning and Construction and Nationally Significant Freight and Highway Project Funds Award Year: Multiple Grant Award Number: Multiple Compliance Requirements: Other - Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of expenditures of Federal awards Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) states that the auditee (the City) must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total federal awards expended as determined in accordance with §200.502. In addition, §200.303 of the Uniform Guidance states that the City must establish and maintain effective internal control over the federal awards, including controls over the accuracy of program information and expenditure amounts. Condition: During our audit procedures performed over the SEFA and expenditures reported for the CDBG - Entitlement Grants Cluster, Highway Planning and Construction, and Nationally Significant Freight and Highway Project Funds, we noted the following: 1. The City did not properly identify the amount expended for the CDBG - Entitlement Grants Cluster, AL No. 14.218. The expenditures reported by the City were understated by $154,071. 2. The City did not properly identify the amount expended for the Highway Planning and Construction, AL No. 20.205. The expenditures reported by the City were overstated by $5,098,179. 3. The City did not properly classify the amount expended for the Nationally Significant Freight and Highway Project Funds, AL No. 20.934. The expenditures reported by the City were understated by $2,769,610. Cause: As a result, the City lacks adequate internal controls to ensure the SEFA is completely and accurately stated. Specifically, the City’s processes for recording and tracking expenditures of federal awards are not designed so that expenditures are identified when incurred and assigned to the correct program name or cluster in a complete and timely manner. Effect: The SEFA, as originally presented, was overstated by $2,174,498. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No sampling was used. Program expenditures on the SEFA were reconciled to supporting records. Repeat Finding from the Prior Year(s): No. Recommendation: The City should establish policies and implement internal controls to ensure all federal expenditures are accurately tracked and reported on the SEFA. Personnel knowledgeable of federal expenditures should review amounts coded to federal programs for completeness and accuracy. The SEFA should be prepared and reviewed in a timely manner and reconciled to underlying records as well as the basic financial statements. View of Responsible Official and Planned Corrective Actions See separate corrective action plan.
(2023-054) Title: Internal control over DOT subrecipient and contractor determinations needs improvement Prior Year Findings: None State Department: Transportation State Bureau: Finance and Administration Planning Federal Agency: U.S. Department of Transportation Assistance Listing Title: Formula Grants for Rural Areas and Tribal Transit Program (COVID-19) Assistance Listing Number: 20.509 Federal Award Identification Number: See E-93 to E-94 Compliance Area: Reporting Subrecipient monitoring Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.331; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN) and include the total amount provided to subrecipients from each Federal program. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State’s SEFA. OSC is responsible for compiling this information on behalf of the State. The Office of the State Auditor reviewed SEFA amounts reported to OSC by the Department and identified $3,064,233 of Federal expenditures incorrectly reported as amounts provided to subrecipients that should have been reported as direct expenditures. The Department did not properly document the role of the parties receiving the funds as vendors and contractors or subrecipients. As a result, vendor and contractor payments were incorrectly included in the initial amount reported on the SEFA as amounts provided to subrecipients. Context: The Department erroneously reported amounts provided to subrecipients totaling $16.3 million and direct expenditures totaling $5.6 million. The correct amounts provided to subrecipients totaled $13.3 million and direct expenditures totaled $8.7 million for fiscal year 2023. Cause: • Lack of adequate procedures • Lack of supervisory oversight Effect: • Inaccurate classifications of subrecipients versus vendors could lead to monitoring the activities of vendors, thus utilizing resources that could be allocated to other program needs. • Incomplete or inaccurate reporting of expenditures on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy or statistical purposes. Recommendation: We recommend that the Department enhance procedures to: • document the subrecipient determination process to properly classify vendors and contractors versus subrecipients; and • improve preparation, review, and submission of SEFA information to OSC. Corrective Action Plan: See F-25 Management’s Response: The Department agrees with this finding. The Department will update procedures to ensure the classification of subrecipients versus contractors is documented and to improve the SEFA information that is submitted. Contact: Kathleen Malcolm, Financial Processing Director, MDOT, 207-624-3292 (State Number: 23-1402-01)
(2023-054) Title: Internal control over DOT subrecipient and contractor determinations needs improvement Prior Year Findings: None State Department: Transportation State Bureau: Finance and Administration Planning Federal Agency: U.S. Department of Transportation Assistance Listing Title: Formula Grants for Rural Areas and Tribal Transit Program (COVID-19) Assistance Listing Number: 20.509 Federal Award Identification Number: See E-93 to E-94 Compliance Area: Reporting Subrecipient monitoring Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.331; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must make case-by-case determinations whether each agreement it makes for the disbursement of Federal program funds casts the party receiving the funds in the role of a subrecipient or a contractor. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN) and include the total amount provided to subrecipients from each Federal program. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State’s SEFA. OSC is responsible for compiling this information on behalf of the State. The Office of the State Auditor reviewed SEFA amounts reported to OSC by the Department and identified $3,064,233 of Federal expenditures incorrectly reported as amounts provided to subrecipients that should have been reported as direct expenditures. The Department did not properly document the role of the parties receiving the funds as vendors and contractors or subrecipients. As a result, vendor and contractor payments were incorrectly included in the initial amount reported on the SEFA as amounts provided to subrecipients. Context: The Department erroneously reported amounts provided to subrecipients totaling $16.3 million and direct expenditures totaling $5.6 million. The correct amounts provided to subrecipients totaled $13.3 million and direct expenditures totaled $8.7 million for fiscal year 2023. Cause: • Lack of adequate procedures • Lack of supervisory oversight Effect: • Inaccurate classifications of subrecipients versus vendors could lead to monitoring the activities of vendors, thus utilizing resources that could be allocated to other program needs. • Incomplete or inaccurate reporting of expenditures on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy or statistical purposes. Recommendation: We recommend that the Department enhance procedures to: • document the subrecipient determination process to properly classify vendors and contractors versus subrecipients; and • improve preparation, review, and submission of SEFA information to OSC. Corrective Action Plan: See F-25 Management’s Response: The Department agrees with this finding. The Department will update procedures to ensure the classification of subrecipients versus contractors is documented and to improve the SEFA information that is submitted. Contact: Kathleen Malcolm, Financial Processing Director, MDOT, 207-624-3292 (State Number: 23-1402-01)
(2023-057) Title: Internal control over the submission of HAF Program Schedule of Expenditures of Federal Awards reporting needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Security and Employment Service Center Federal Agency: U.S. Department of the Treasury Assistance Listing Title: Homeowner Assistance Fund Program (COVID-19) Assistance Listing Number: 21.026 Federal Award Identification Number: See E-93 to E-94 Compliance Area: Reporting Type of Finding: Material weakness Material noncompliance Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must include the total amount provided to subrecipients from each Federal program. Condition: The Department must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State’s SEFA. Federal program expenditures reported on the SEFA must be segregated between direct award expenditures and amounts provided to subrecipients. OSC is responsible for compiling this information on behalf of the State. In fiscal year 2023, the Department of Professional and Financial Regulation received Federal funding and incurred related expenditures under ALN 21.026, the Homeowner Assistance Fund (HAF) Program. The Security and Employment Service Center (SESC), which is responsible for submitting the summary of HAF expenditures to OSC, did not segregate the amounts provided to subrecipients in the exhibits and related schedules provided to OSC. OSC utilized this information to compile and prepare the SEFA. As a result, all HAF expenditures were inaccurately reported as direct expenditures on the State’s fiscal year 2023 SEFA when provided to the Office of the State Auditor for audit purposes. Context: In fiscal year 2023, HAF expenditures totaled $12.3 million. Of that amount, $4.3 million was direct expenditures and $8.0 million was paid to subrecipients. Cause: Lack of adequate internal control relating to Department SEFA submissions to OSC Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that SESC implement additional procedures to improve preparation and submission of SEFA information to OSC. These control procedures will ensure that expenditures are reported accurately on the SEFA. Corrective Action Plan: See F-26 Management’s Response: The Department agrees with this finding. The expenditure data was not correctly classified as sub-recipient expenditures. Contact: Marilyn Leimbach, Director, Security and Employment Service Center, DFPS, DAFS, 207-248-2556 (State Number: 23-1000-01)
(2023-061) Title: Internal control over CSLFRF reporting needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Security and Employment Service Center Federal Agency: U.S. Department of the Treasury Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds (COVID-19) Assistance Listing Number: 21.027 Federal Award Identification Number: See E-93 to E-94 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.332(b); 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must maintain accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with reporting requirements. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN) and include the total amount provided to subrecipients from each Federal program. Condition: The Department of Administrative and Financial Services’ Security and Employment Service Center (SESC) is responsible for accurately recording information needed to report on the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Quarterly Project and Expenditure Reports. Information from these CSLFRF reports is used by the Office of the State Controller for SEFA preparation. The Office of the State Auditor reviewed amounts reported on the SEFA and identified $24.1 million of Federal expenditures incorrectly reported as amounts provided to subrecipients that should have been reported as direct expenditures. SESC inaccurately identified vendors as subrecipients. As a result, vendor payments were incorrectly classified as subrecipient payments on the CSLFRF Quarterly Project and Expenditure Reports and were incorrectly included in the initial amount reported on the SEFA as amounts provided to subrecipients. Context: Payments to the providers totaled $24.1 million of the $207.8 million in CSLFRF expenditures. Cause: • Lack of adequate policies and procedures • Lack of supervisory oversight Effect: • Incomplete or inaccurate reporting of expenditures on the CSLFRF reports and SEFA, which are submitted to the Federal government, may result in incorrect information used for programmatic, policy or statistical purposes. • Noncompliance with Federal regulations Recommendation: We recommend that the Department implement policies and procedures to ensure contractors and subrecipients are appropriately classified and reported on the CSLFRF Quarterly Project and Expenditure Reports and SEFA. Corrective Action Plan: See F-27 Management’s Response: The Department agrees with this finding. The Security and Employment Service Center will continue to work with our partner agencies to help ensure the sub-recipient/vendor classification is appropriately determined when the initial contracts are written. Contact: Marilyn Leimbach, Director, Security and Employment Service Center, DFPS, DAFS, 207-248-2556 (State Number: 23-1699-03)
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-002 Federal Program Title: Maternal and Child Health Services Block Grant to the States Federal Assistance Listing Number: 93.994 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: California Department of Health Care Services/Public Health Institute Federal Award Number and Year: 202219; Fiscal Year 2022-23 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. At a minimum, the schedule must provide total Federal awards expended for each individual Federal program and the Assistance Listings Number (ALN). Condition During our audit of the DPH’s Maternal and Child Health Services Block Grant to the States (MCH) program, we noted that DPH incorrectly reported expenditures for the MCH Program in the SEFA. $2,163,020 in expenditures for ALN 93.778 Medicaid Assistance Program, were reported as MCH Program expenditures under ALN 93.994. The SEFA was corrected to properly report the expenditures under both ALNs. Cause DPH used funds from ALN 93.778 Medicaid Assistance Program, as matching funds for the MCH Program, as allowed by the MCH Program. While DPH tracked the expenditures for the two ALNs separately, it reported all of the expenditures in the SEFA under the MCH Program. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit and the timely completion of the Single Audit. The MCH program was selected as a Type B program and audited for FY 2022-23. Upon correcting the error identified, an additional Type B program was required to be selected for audit, as MCH fell below the Type B program threshold for FY 2022-23 and did not need to be considered in the County’s risk assessment. Questioned Costs Questioned costs were not identified. Context The MCH Program originally reported total expenditures of $3,361,264 in FY 2022-23 for two different federal programs: ALN 93.994 for $1,198,244 and ALN 93.778 for $2,163,020. DPH reported the expenditures as $3,361,264 for ALN 93.994 and $0 for ALN 93.778. The SEFA was corrected to appropriately report the expenditures in ALN 93.994 and ALN 93.778. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure expenditures are reported under the correct federal program ALN.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
Reference Number: 2023-001 Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Assistance Listing Number: 93.323 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A Federal Award Number and Year: 6 NU50CK000498-02-04; Fiscal Year 2021-22 Name of Department: Department of Public Health Category of Finding: Schedule of Expenditure of Federal Awards Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria In accordance with Title 2 U.S. Code of Federal Regulations (CFR) § 200.510 the non-Federal entity must prepare the schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee non-Federal entity's financial statements which must include the total Federal awards expended as determined in accordance with § 200.502. 2 CFR § 200.502 states: The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: expenditure/expense transactions associated with awards including grants, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of surplus property; the receipt or use of program income; the distribution or use of food commodities; the disbursement of amounts entitling the non-Federal entity to an interest subsidy; and the period when insurance is in force. Condition During our audit of the Department of Public Health’s (DPH) Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program, we noted that DPH under reported expenditures in the SEFA for fiscal year ended June 30, 2022 by $27.5 million. The County disclosed the prior year expenditures not previously reported in note 9 to the SEFA. Cause The program misinterpreted guidance provided by the Office of the Auditor-Controller on identifying expenditures to include in the SEFA, and did not include accruals recorded in the accounting system for services incurred but not paid as of June 30, 2022. Effect Failure to accurately identify and report Federal expenditures in the SEFA could affect the major program determination and the programs selected for audit. Questioned Costs Questioned costs were not identified. Context The FY 2021-22 SEFA underreported $27.5 million of expenditures, constituting 4.5 percent of the ELC program’s reported total expenditures of $607.4 million, or 4.3 percent of the ELC program’s actual total expenditures of $634.9 million. The County disclosed the prior year expenditures not previously reported in note 9 of the notes to the SEFA. The under reporting of expenditures in the SEFA did not affect the prior year’s major program determination and programs selected for audit. Recommendation We recommend that the DPH strengthen its processes for identifying and reporting Federal expenditures in the SEFA to ensure all services incurred but not paid during the applicable fiscal year are appropriately included in the SEFA.
2023 – 007 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Federal Award Identification Number and Year: See FAIN numbers included within the Context section below; all grants were awarded within the 2021-22 and 2022-23 award years. Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Uniform Guidance requires the auditee to prepare a Schedule of Expenditures of Federal Awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition and Context: During our testing of completeness of the SEFA for Cheyney University (P007A213558, P007A223558, P063P212131, P063P222131, P268K222131, and P268K232131) we noted approximately $3,000,000 of institutional aid expenditures were incorrectly included in the Student Financial Assistance Cluster. The error is a result of institutional aid expenditures being disallowed from the student financial assistance program and the SEFA not being subsequently updated. Questioned Costs: N/A Cause: The University did not timely update the SEFA and provide an updated version to the auditors. Effect: The SEFA contained errors in the balances reported for federal expenditures, which can cause the miscalculation of major programs and testing selections. Repeat Finding: No Recommendation: The University should review applicable guidance as well as its policies and procedures in place to ensure Federal grant and loan related activity is properly reflecting within the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding.
2023 – 007 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Federal Award Identification Number and Year: See FAIN numbers included within the Context section below; all grants were awarded within the 2021-22 and 2022-23 award years. Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Uniform Guidance requires the auditee to prepare a Schedule of Expenditures of Federal Awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition and Context: During our testing of completeness of the SEFA for Cheyney University (P007A213558, P007A223558, P063P212131, P063P222131, P268K222131, and P268K232131) we noted approximately $3,000,000 of institutional aid expenditures were incorrectly included in the Student Financial Assistance Cluster. The error is a result of institutional aid expenditures being disallowed from the student financial assistance program and the SEFA not being subsequently updated. Questioned Costs: N/A Cause: The University did not timely update the SEFA and provide an updated version to the auditors. Effect: The SEFA contained errors in the balances reported for federal expenditures, which can cause the miscalculation of major programs and testing selections. Repeat Finding: No Recommendation: The University should review applicable guidance as well as its policies and procedures in place to ensure Federal grant and loan related activity is properly reflecting within the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding.
2023 – 007 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Federal Award Identification Number and Year: See FAIN numbers included within the Context section below; all grants were awarded within the 2021-22 and 2022-23 award years. Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Uniform Guidance requires the auditee to prepare a Schedule of Expenditures of Federal Awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition and Context: During our testing of completeness of the SEFA for Cheyney University (P007A213558, P007A223558, P063P212131, P063P222131, P268K222131, and P268K232131) we noted approximately $3,000,000 of institutional aid expenditures were incorrectly included in the Student Financial Assistance Cluster. The error is a result of institutional aid expenditures being disallowed from the student financial assistance program and the SEFA not being subsequently updated. Questioned Costs: N/A Cause: The University did not timely update the SEFA and provide an updated version to the auditors. Effect: The SEFA contained errors in the balances reported for federal expenditures, which can cause the miscalculation of major programs and testing selections. Repeat Finding: No Recommendation: The University should review applicable guidance as well as its policies and procedures in place to ensure Federal grant and loan related activity is properly reflecting within the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding.
2023 – 007 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Federal Award Identification Number and Year: See FAIN numbers included within the Context section below; all grants were awarded within the 2021-22 and 2022-23 award years. Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Uniform Guidance requires the auditee to prepare a Schedule of Expenditures of Federal Awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. Condition and Context: During our testing of completeness of the SEFA for Cheyney University (P007A213558, P007A223558, P063P212131, P063P222131, P268K222131, and P268K232131) we noted approximately $3,000,000 of institutional aid expenditures were incorrectly included in the Student Financial Assistance Cluster. The error is a result of institutional aid expenditures being disallowed from the student financial assistance program and the SEFA not being subsequently updated. Questioned Costs: N/A Cause: The University did not timely update the SEFA and provide an updated version to the auditors. Effect: The SEFA contained errors in the balances reported for federal expenditures, which can cause the miscalculation of major programs and testing selections. Repeat Finding: No Recommendation: The University should review applicable guidance as well as its policies and procedures in place to ensure Federal grant and loan related activity is properly reflecting within the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding.
2023-002 Reporting Federal Agency: Federal Emergency Management Agency Federal Program Names: COVID-19, Disaster Grants – Public Assistance Assistance Listing Number: 97.036 Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. Condition: It was identified that there were expenditures included on SEFA for the year ended June 30, 2023 that were for awards obligated in the prior fiscal year. Questioned Costs: None. Context: There are $78,859 reported on the current year SEFA that should have been reported on the SEFA for the period ended June 30, 2022. Cause: The University’s policies and procedures did not ensure that funds obligated in the prior fiscal year were appropriately included on the SEFA. Effect: Amounts reported on the current year SEFA should have been reported on the prior year SEFA. Repeat Finding: No. Recommendation: We recommend that the University reevaluate its policies and controls related to the preparation of the SEFA to ensure its complete and accurate. Views of responsible officials: There is no disagreement with the audit finding.
This section identifies the audit findings required to be reported by 2 CFR 200 Section 516(a) of the Uniform Guidance (for example, significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs), as well as any abuse findings involving federal awards that are material to a major program. 2023-002 Preparation of Schedule of Expenditures of Federal Awards Identification of the Federal Programs: Assistance Listing Number (ALN) - 93.788 Opioid STR, from the U.S. Department of Health and Human Services passed through from the State of Tennessee Department of Mental Health and Substance Abuse Services, and ALN - 97.036 U.S. Department of Homeland Security - Disaster Grants - Public Assistance (Presidentially Declared Disasters). Criteria: 2 CFR 200.510 of the Uniform Guidance indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. In addition, 2 CFR Part 200.303 requires the entity to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition: Ballad did not have adequate controls in place to ensure the SEFA was accurate. The initial draft of the SEFA included expenditures for ALN - 93.788 that were accidentally “double-counted” in the SEFA. This resulted in expenditures on the SEFA being overstated by $188,242 for this program. The initial draft of the SEFA also included expenditures for ALN - 97.036 that were amounts required to be returned to the grantor agency and not expenditures. This resulted in expenditures on the SEFA being overstated by $312,092 for this program. Revisions to the SEFA were required to accurately present the federal expenditures for the period. Cause of Condition: Ballad did not perform an adequate review of the prepared SEFA and did not implement procedures to ensure the amounts recorded were complete and accurate in relation to the consolidated financial statements. Effect: If not corrected, inaccurate expenditures would have been reported to the federal government. In addition, the errors could result in improper selection of major program(s) for the Uniform Guidance audit. Context: There are no questioned costs associated with this finding. Auditor’s Recommendation: Ballad should establish formal procedures for determination of federal expenditures for inclusion in the SEFA. We further recommend training for those involved in the preparation and review of the SEFA to ensure that they are fully aware of the requirements related to SEFA preparation. Views of Responsible Officials and Planned Corrective Actions: Ballad Health will utilize technology efficiencies within upgraded accounting system to supplement reporting. Additionally, a resource will be added directly responsible for grant accounting. The SEFA will also be reviewed frequently to ensure accuracy.
This section identifies the audit findings required to be reported by 2 CFR 200 Section 516(a) of the Uniform Guidance (for example, significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs), as well as any abuse findings involving federal awards that are material to a major program. 2023-002 Preparation of Schedule of Expenditures of Federal Awards Identification of the Federal Programs: Assistance Listing Number (ALN) - 93.788 Opioid STR, from the U.S. Department of Health and Human Services passed through from the State of Tennessee Department of Mental Health and Substance Abuse Services, and ALN - 97.036 U.S. Department of Homeland Security - Disaster Grants - Public Assistance (Presidentially Declared Disasters). Criteria: 2 CFR 200.510 of the Uniform Guidance indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. In addition, 2 CFR Part 200.303 requires the entity to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition: Ballad did not have adequate controls in place to ensure the SEFA was accurate. The initial draft of the SEFA included expenditures for ALN - 93.788 that were accidentally “double-counted” in the SEFA. This resulted in expenditures on the SEFA being overstated by $188,242 for this program. The initial draft of the SEFA also included expenditures for ALN - 97.036 that were amounts required to be returned to the grantor agency and not expenditures. This resulted in expenditures on the SEFA being overstated by $312,092 for this program. Revisions to the SEFA were required to accurately present the federal expenditures for the period. Cause of Condition: Ballad did not perform an adequate review of the prepared SEFA and did not implement procedures to ensure the amounts recorded were complete and accurate in relation to the consolidated financial statements. Effect: If not corrected, inaccurate expenditures would have been reported to the federal government. In addition, the errors could result in improper selection of major program(s) for the Uniform Guidance audit. Context: There are no questioned costs associated with this finding. Auditor’s Recommendation: Ballad should establish formal procedures for determination of federal expenditures for inclusion in the SEFA. We further recommend training for those involved in the preparation and review of the SEFA to ensure that they are fully aware of the requirements related to SEFA preparation. Views of Responsible Officials and Planned Corrective Actions: Ballad Health will utilize technology efficiencies within upgraded accounting system to supplement reporting. Additionally, a resource will be added directly responsible for grant accounting. The SEFA will also be reviewed frequently to ensure accuracy.
This section identifies the audit findings required to be reported by 2 CFR 200 Section 516(a) of the Uniform Guidance (for example, significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs), as well as any abuse findings involving federal awards that are material to a major program. 2023-002 Preparation of Schedule of Expenditures of Federal Awards Identification of the Federal Programs: Assistance Listing Number (ALN) - 93.788 Opioid STR, from the U.S. Department of Health and Human Services passed through from the State of Tennessee Department of Mental Health and Substance Abuse Services, and ALN - 97.036 U.S. Department of Homeland Security - Disaster Grants - Public Assistance (Presidentially Declared Disasters). Criteria: 2 CFR 200.510 of the Uniform Guidance indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. In addition, 2 CFR Part 200.303 requires the entity to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition: Ballad did not have adequate controls in place to ensure the SEFA was accurate. The initial draft of the SEFA included expenditures for ALN - 93.788 that were accidentally “double-counted” in the SEFA. This resulted in expenditures on the SEFA being overstated by $188,242 for this program. The initial draft of the SEFA also included expenditures for ALN - 97.036 that were amounts required to be returned to the grantor agency and not expenditures. This resulted in expenditures on the SEFA being overstated by $312,092 for this program. Revisions to the SEFA were required to accurately present the federal expenditures for the period. Cause of Condition: Ballad did not perform an adequate review of the prepared SEFA and did not implement procedures to ensure the amounts recorded were complete and accurate in relation to the consolidated financial statements. Effect: If not corrected, inaccurate expenditures would have been reported to the federal government. In addition, the errors could result in improper selection of major program(s) for the Uniform Guidance audit. Context: There are no questioned costs associated with this finding. Auditor’s Recommendation: Ballad should establish formal procedures for determination of federal expenditures for inclusion in the SEFA. We further recommend training for those involved in the preparation and review of the SEFA to ensure that they are fully aware of the requirements related to SEFA preparation. Views of Responsible Officials and Planned Corrective Actions: Ballad Health will utilize technology efficiencies within upgraded accounting system to supplement reporting. Additionally, a resource will be added directly responsible for grant accounting. The SEFA will also be reviewed frequently to ensure accuracy.
This section identifies the audit findings required to be reported by 2 CFR 200 Section 516(a) of the Uniform Guidance (for example, significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs), as well as any abuse findings involving federal awards that are material to a major program. 2023-002 Preparation of Schedule of Expenditures of Federal Awards Identification of the Federal Programs: Assistance Listing Number (ALN) - 93.788 Opioid STR, from the U.S. Department of Health and Human Services passed through from the State of Tennessee Department of Mental Health and Substance Abuse Services, and ALN - 97.036 U.S. Department of Homeland Security - Disaster Grants - Public Assistance (Presidentially Declared Disasters). Criteria: 2 CFR 200.510 of the Uniform Guidance indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. In addition, 2 CFR Part 200.303 requires the entity to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition: Ballad did not have adequate controls in place to ensure the SEFA was accurate. The initial draft of the SEFA included expenditures for ALN - 93.788 that were accidentally “double-counted” in the SEFA. This resulted in expenditures on the SEFA being overstated by $188,242 for this program. The initial draft of the SEFA also included expenditures for ALN - 97.036 that were amounts required to be returned to the grantor agency and not expenditures. This resulted in expenditures on the SEFA being overstated by $312,092 for this program. Revisions to the SEFA were required to accurately present the federal expenditures for the period. Cause of Condition: Ballad did not perform an adequate review of the prepared SEFA and did not implement procedures to ensure the amounts recorded were complete and accurate in relation to the consolidated financial statements. Effect: If not corrected, inaccurate expenditures would have been reported to the federal government. In addition, the errors could result in improper selection of major program(s) for the Uniform Guidance audit. Context: There are no questioned costs associated with this finding. Auditor’s Recommendation: Ballad should establish formal procedures for determination of federal expenditures for inclusion in the SEFA. We further recommend training for those involved in the preparation and review of the SEFA to ensure that they are fully aware of the requirements related to SEFA preparation. Views of Responsible Officials and Planned Corrective Actions: Ballad Health will utilize technology efficiencies within upgraded accounting system to supplement reporting. Additionally, a resource will be added directly responsible for grant accounting. The SEFA will also be reviewed frequently to ensure accuracy.
This section identifies the audit findings required to be reported by 2 CFR 200 Section 516(a) of the Uniform Guidance (for example, significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs), as well as any abuse findings involving federal awards that are material to a major program. 2023-002 Preparation of Schedule of Expenditures of Federal Awards Identification of the Federal Programs: Assistance Listing Number (ALN) - 93.788 Opioid STR, from the U.S. Department of Health and Human Services passed through from the State of Tennessee Department of Mental Health and Substance Abuse Services, and ALN - 97.036 U.S. Department of Homeland Security - Disaster Grants - Public Assistance (Presidentially Declared Disasters). Criteria: 2 CFR 200.510 of the Uniform Guidance indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. In addition, 2 CFR Part 200.303 requires the entity to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition: Ballad did not have adequate controls in place to ensure the SEFA was accurate. The initial draft of the SEFA included expenditures for ALN - 93.788 that were accidentally “double-counted” in the SEFA. This resulted in expenditures on the SEFA being overstated by $188,242 for this program. The initial draft of the SEFA also included expenditures for ALN - 97.036 that were amounts required to be returned to the grantor agency and not expenditures. This resulted in expenditures on the SEFA being overstated by $312,092 for this program. Revisions to the SEFA were required to accurately present the federal expenditures for the period. Cause of Condition: Ballad did not perform an adequate review of the prepared SEFA and did not implement procedures to ensure the amounts recorded were complete and accurate in relation to the consolidated financial statements. Effect: If not corrected, inaccurate expenditures would have been reported to the federal government. In addition, the errors could result in improper selection of major program(s) for the Uniform Guidance audit. Context: There are no questioned costs associated with this finding. Auditor’s Recommendation: Ballad should establish formal procedures for determination of federal expenditures for inclusion in the SEFA. We further recommend training for those involved in the preparation and review of the SEFA to ensure that they are fully aware of the requirements related to SEFA preparation. Views of Responsible Officials and Planned Corrective Actions: Ballad Health will utilize technology efficiencies within upgraded accounting system to supplement reporting. Additionally, a resource will be added directly responsible for grant accounting. The SEFA will also be reviewed frequently to ensure accuracy.
This section identifies the audit findings required to be reported by 2 CFR 200 Section 516(a) of the Uniform Guidance (for example, significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs), as well as any abuse findings involving federal awards that are material to a major program. 2023-002 Preparation of Schedule of Expenditures of Federal Awards Identification of the Federal Programs: Assistance Listing Number (ALN) - 93.788 Opioid STR, from the U.S. Department of Health and Human Services passed through from the State of Tennessee Department of Mental Health and Substance Abuse Services, and ALN - 97.036 U.S. Department of Homeland Security - Disaster Grants - Public Assistance (Presidentially Declared Disasters). Criteria: 2 CFR 200.510 of the Uniform Guidance indicates that the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with 200.502, Basis for Determining Federal Awards Expended. Per 2 CFR 200.502, the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. In addition, 2 CFR Part 200.303 requires the entity to establish and maintain effective internal controls over federal awards that provides reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition: Ballad did not have adequate controls in place to ensure the SEFA was accurate. The initial draft of the SEFA included expenditures for ALN - 93.788 that were accidentally “double-counted” in the SEFA. This resulted in expenditures on the SEFA being overstated by $188,242 for this program. The initial draft of the SEFA also included expenditures for ALN - 97.036 that were amounts required to be returned to the grantor agency and not expenditures. This resulted in expenditures on the SEFA being overstated by $312,092 for this program. Revisions to the SEFA were required to accurately present the federal expenditures for the period. Cause of Condition: Ballad did not perform an adequate review of the prepared SEFA and did not implement procedures to ensure the amounts recorded were complete and accurate in relation to the consolidated financial statements. Effect: If not corrected, inaccurate expenditures would have been reported to the federal government. In addition, the errors could result in improper selection of major program(s) for the Uniform Guidance audit. Context: There are no questioned costs associated with this finding. Auditor’s Recommendation: Ballad should establish formal procedures for determination of federal expenditures for inclusion in the SEFA. We further recommend training for those involved in the preparation and review of the SEFA to ensure that they are fully aware of the requirements related to SEFA preparation. Views of Responsible Officials and Planned Corrective Actions: Ballad Health will utilize technology efficiencies within upgraded accounting system to supplement reporting. Additionally, a resource will be added directly responsible for grant accounting. The SEFA will also be reviewed frequently to ensure accuracy.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.667 Program Name: Social Security Blocks Grant U.S Department of Health and Human Services Passed-through Eckerd Youth Alternatives, Inc. ALN Number: 93.558 Program Name: Temporary Assistance for Needy Families State of Florida Department of Children and Families Passed-through Family Support Services of Suncoast CSFA Number: 60.214 Project Name: Family Preservation and CWS Diversion Program – Circuit 6 See Financial Statement Finding 2023-001 Material Weakness Criteria: The schedule of expenditures of federal awards and state financial assistance (the Schedule) should reflect expenditures of federal and state programs. Generally, this would mean that the expenses reported should reconcile to the consolidated financial statements. 2 CFR 200.510(b) indicates 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 total federal awards expended as determined in accordance with 2 CFR 200.502. Rule 69I-5.003 of the Department of Financial Services, Rules, Chapter 69I-5, Florida Administrative Code, State Financial Assistance, requires an auditee to prepare a schedule of expenditures of state financial assistance for the period covered by the auditee’s financial statements. Condition: When compiling the Schedule, the Organization omitted expenditures from one federal program and one state project, resulting in the Schedule being incomplete and inaccurate. Cause: Proper controls were not put into place in order to ensure that all post-award notices received from funding agencies were properly incorporated into the Schedule. Effect or Potential Effect: The amounts that are misreported could potentially be in the wrong fiscal year or perpetually omitted from the Schedule, impacting future funding from government agencies. ALN Number 93.667 was understated on the Schedule $564,123. ALN Number 93.558 was overstated on the Schedule by $1,139,173. CSFA Number 60.214 was understated on the Schedule by $727,339. Recommendation: We recommend that management enhance controls and procedures to ensure all post-award notices received from funding agencies are properly incorporated into the Schedule. We recommend management enhance controls around the Schedule reconciliation process back to the consolidated financial statements. Questioned Costs: None Context: This finding is isolated to the federal programs and state project identified above. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.
Questioned Costs: Not applicable Criteria: The Uniform Guidance Federal regulations per 2 CFR section 200.510 requires, an auditee to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR section 200.502. With respect to Disaster Grant – Public Assistance Grants, nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s Project worksheet, and (2) the nonfederal entity has incurred the eligible expenditures. Federal awards expended in years after the fiscal year in which the Project is approved are to be recorded on the nonfederal entity’s SEFA in those subsequent years. Universe/Population: Not applicable. Condition: The dollar amount of federal awards expended for the Disaster Grant – Public Assistance was not reported accurately on the prepared schedule provided by management. Cause: Internal controls have not been properly established over the reconciliation of FEMA approved projects with allowable expenditures for reporting on the SEFA. Effect: Improper reporting of expenditures resulted in an incorrect assessment of the major federal programs to be audited as the dollar threshold distinguishing type A and B programs remained volatile based on revisions and reconciliation of expenditures recorded in the fund for which disaster grant funding was to be the source of reimbursement. Recommendations: The School Board should develop and establish a process with its outsourced administrator of FEMA funded projects to ensure the proper federal awards are reported on the SEFA. View of Responsible Official: Management concurs with this finding, see corrective action plan dated March 27, 2024.
Finding 2023-011 – Schedule of Expenditures of Federal Awards (SEFA) Preparation Identification of the federal program: U.S. Department of Education Office of Federal Student Aid Student Financial Assistance Cluster Assistance Listing No. 84.007, 84.063, 84.268 Good Samaritan College of Nursing & Health Science Criteria or specific requirement (including statutory, regulatory, or other citation): 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be compliance with guidance in “Standards for Internal Control the Federal Government” issued by the Comptroller General the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Title 2, Subtitle A Chapter II Part 200 Subpart F Section 200.510(b) Schedule of expenditures of Federal awards. The auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with Section 200.502. Section 200.502(a) states the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Condition: Management did not have effective internal controls in place to ensure accurate and complete reporting of federal programs on the SEFA. This resulted an overstatement of the SFA expenditures reported in the SEFA. Cause: Management did not reconcile amounts reported on the SEFA for the SFA program to the underlying detail to ensure accurate and complete reporting of the federal program in the SEFA. Effect or potential effect: Certain amounts in the SEFA were reported incorrectly or omitted. Questioned costs: None. Context: During our testing for Good Samaritan College of Nursing & Health Science, we obtained a population of disbursements and reconciled the total payments to the SEFA. Disbursements totaled $3,538,116 compared to the amount reported in the SEFA of $4,627,538. This resulted in an overstatement of SFA expenditures reported in the SEFA of $1,089,372 for Good Samaritan College of Nursing & Health Science. The amounts reported in the final SEFA in this report for SFA expenditures for Good Samaritan College of Nursing & Health Science have been corrected to $3,538,116. Management’s control regarding the review of the SEFA did not identify this error. SFA expenditures for Good Samaritan College of Nursing & Health Science of $3.5 million represent 85% of total SFA expenditures of $4.2 million and 1% of total SEFA expenditures of $309.9 million. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: Management should develop and implement internal controls to ensure the completeness and accuracy of the SEFA and review applicable guidance prior to finalization. Views of responsible officials: Management agrees with the finding and implemented corrective action in February 2024.
Finding 2023-011 – Schedule of Expenditures of Federal Awards (SEFA) Preparation Identification of the federal program: U.S. Department of Education Office of Federal Student Aid Student Financial Assistance Cluster Assistance Listing No. 84.007, 84.063, 84.268 Good Samaritan College of Nursing & Health Science Criteria or specific requirement (including statutory, regulatory, or other citation): 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be compliance with guidance in “Standards for Internal Control the Federal Government” issued by the Comptroller General the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Title 2, Subtitle A Chapter II Part 200 Subpart F Section 200.510(b) Schedule of expenditures of Federal awards. The auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with Section 200.502. Section 200.502(a) states the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Condition: Management did not have effective internal controls in place to ensure accurate and complete reporting of federal programs on the SEFA. This resulted an overstatement of the SFA expenditures reported in the SEFA. Cause: Management did not reconcile amounts reported on the SEFA for the SFA program to the underlying detail to ensure accurate and complete reporting of the federal program in the SEFA. Effect or potential effect: Certain amounts in the SEFA were reported incorrectly or omitted. Questioned costs: None. Context: During our testing for Good Samaritan College of Nursing & Health Science, we obtained a population of disbursements and reconciled the total payments to the SEFA. Disbursements totaled $3,538,116 compared to the amount reported in the SEFA of $4,627,538. This resulted in an overstatement of SFA expenditures reported in the SEFA of $1,089,372 for Good Samaritan College of Nursing & Health Science. The amounts reported in the final SEFA in this report for SFA expenditures for Good Samaritan College of Nursing & Health Science have been corrected to $3,538,116. Management’s control regarding the review of the SEFA did not identify this error. SFA expenditures for Good Samaritan College of Nursing & Health Science of $3.5 million represent 85% of total SFA expenditures of $4.2 million and 1% of total SEFA expenditures of $309.9 million. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: Management should develop and implement internal controls to ensure the completeness and accuracy of the SEFA and review applicable guidance prior to finalization. Views of responsible officials: Management agrees with the finding and implemented corrective action in February 2024.
Finding 2023-011 – Schedule of Expenditures of Federal Awards (SEFA) Preparation Identification of the federal program: U.S. Department of Education Office of Federal Student Aid Student Financial Assistance Cluster Assistance Listing No. 84.007, 84.063, 84.268 Good Samaritan College of Nursing & Health Science Criteria or specific requirement (including statutory, regulatory, or other citation): 2 CFR 200.303 requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be compliance with guidance in “Standards for Internal Control the Federal Government” issued by the Comptroller General the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Title 2, Subtitle A Chapter II Part 200 Subpart F Section 200.510(b) Schedule of expenditures of Federal awards. The auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total federal awards expended as determined in accordance with Section 200.502. Section 200.502(a) states the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Condition: Management did not have effective internal controls in place to ensure accurate and complete reporting of federal programs on the SEFA. This resulted an overstatement of the SFA expenditures reported in the SEFA. Cause: Management did not reconcile amounts reported on the SEFA for the SFA program to the underlying detail to ensure accurate and complete reporting of the federal program in the SEFA. Effect or potential effect: Certain amounts in the SEFA were reported incorrectly or omitted. Questioned costs: None. Context: During our testing for Good Samaritan College of Nursing & Health Science, we obtained a population of disbursements and reconciled the total payments to the SEFA. Disbursements totaled $3,538,116 compared to the amount reported in the SEFA of $4,627,538. This resulted in an overstatement of SFA expenditures reported in the SEFA of $1,089,372 for Good Samaritan College of Nursing & Health Science. The amounts reported in the final SEFA in this report for SFA expenditures for Good Samaritan College of Nursing & Health Science have been corrected to $3,538,116. Management’s control regarding the review of the SEFA did not identify this error. SFA expenditures for Good Samaritan College of Nursing & Health Science of $3.5 million represent 85% of total SFA expenditures of $4.2 million and 1% of total SEFA expenditures of $309.9 million. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: Management should develop and implement internal controls to ensure the completeness and accuracy of the SEFA and review applicable guidance prior to finalization. Views of responsible officials: Management agrees with the finding and implemented corrective action in February 2024.