Finding Text
2022-002 ? Preparation of the Schedule of Expenditures of Federal AwardsIdentification of the Federal Program:United States Department of Health and Human ServicesAssistance Listing Numbers:93.650 Accountable Health Communities93.558 Temporary Assistance for Needy Families93.667 Social Services Block Grant93.738 Racial & Ethnic Approaches to Community Health; Program Solely Funded by Public Prevention Health Funds93.044 Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers93.052 National Family Caregiver Support, Title III, Part E93.268 Immunization Cooperative AgreementsUnited States Department of Housing and Urban DevelopmentAssistance Listing Number: 14.218 Community Development Block GrantsUnited States Department of TreasuryAssistance Listing Number: 21.019 Coronavirus Relief FundUnited States Department of Homeland SecurityAssistance Listing Number: 97.024 Emergency Food and ShelterCriteria ? The Code of Federal Regulation (CFR) Section ?200.510(b) states in part: ?The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ?200.502 `Basis for Determining Federal awards expended?. The schedule must provide total Federal awards expended for each individual Federal program.Condition ? During management?s preparation of the Schedule of Expenditures of Federal Awards (SEFA), the finance team of the Organization uses cost center reports that identify Federal dollars spent throughout the year.The SEFA preparation and review process did not appropriately reflect total Federal Expenditures for the period covered.The SEFA originally prepared by management was reported on the basis of cash received by Federal Programs, instead of the accrual basis of accounting, which is consistent with the presentation of the financial statements. After management adjusted the SEFA to reflect total expenditures of federal awards, the amount on the SEFA decreased by $52,688.Cause: The internal controls established for the review and approval for the SEFA to ensure its completeness and accuracy did not operate as designed.Effect: The SEFA provided for the audit was inaccurate for the reason outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments.Questioned Costs: There are no questioned costs as the items outlined above are internal control related matters and not matters related to the accuracy of the information reported to the awarding agency in the financial reports.Context: The conditions outlined above are based on our testing of the Organization?s major programs and our overall testing of the accuracy of the SEFA. The nature of this finding is detailed in the condition section above.Repeat Finding: This is not a repeat finding.Recommendation: We recommend that the Organization ensure its policies and procedures are followed on a consistent basis. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: The Organization concurs with the finding and the recommendation. The Organization?s corrective action plan is described in Management?s Corrective Action Plan included at page 58 of this reporting package.