Finding Text
2022-003 - Schedule of Expenditures of Federal Awards (SEFA) PreparationCriteria: Under Uniform Guidance (2 C.F.R. Part 200) Subpart F Section 200.502 the auditee must alsoprepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee'sfinancial statements which must include the total of all federal awards expended.Condition: Material audit adjustments were required to present a complete and accurate SEFA incompliance with those of Uniform Guidance.Cause: The Agency need to enhance reconciliation of grant vouchers/accruals with general ledger activitythroughout the year. These reconciliations should be analyzed by a member of management with adequateexperience and training to properly recognize revenue in accordance with grants agreements. Further, thepreparation of the SEFA process lacks adequate analysis and oversight.Effect: Several SEFA versions prepared by management required material adjustments to present theAgency?s federal expenditures in accordance with the requirements of Uniform Guidance, including properlydelineating federal vs. non-federal expenses.Recommendation: We recommend that management implement a process to reconcile and review grantvouchers and reports to the general ledger activity throughout the year, including evaluating the revenueand expense relationship. We recommend management implement an oversight function over the processof preparing the SEFA.Views of Responsible Official and Planned Corrective Actions: The Executive Director and Senior Director ofFinance will update year-end closing procedures and checklists to support completion of closing in January ofeach year. The existing process will be documented indicating the Controller will complete the SEFA and asecond review will be completed by a separate individual.