Finding Text
Formerly 2021-005: Reporting
Federal Program: Assistance Listing No.: 14.267 Continuum of Care Program (“CoC”) & 93.558 Temporary Assistance for Needy Families (TANF)
Condition: The Organization did not prepare a complete Schedule of Expenditures of Federal Awards that
was able to be verified and tie out to trial balance.
Criteria: The Schedule of Expenditures of Federal Awards ("SEFA") is required under federal regulations to be prepared by the Auditee by funding organizations when spending $750,000 or more in federal funds.
Questioned Costs: There are no questioned costs.
Cause: The Organization did not have sufficient controls over the tracking of federal and state
expenditures and reconciled to the general ledger.
Effect: The Organization could have expenditures reported on the SEFA that should not be or ones that should have been reported but were not reported on the SEFA.
Recommendation: In order to prevent future occurrences of this deficiency, we recommend that management develop a method to track federal grant funds and the use of those funds and reconcile both to the general ledger.
Perspective: This is a systemic issue in that controls over the requirement have not been developed to ensure that reported information is accurate.
Repeat: This is a repeat finding.
Responsible Official’s View: The Organization agrees with the finding. See attached corrective action plan.