Finding Text
Finding 2023-III-002 – Federal Audit Clearinghouse Submission
Type of Finding – Significant Deficiency
Criteria: Governmental entities that spend at least $750,000 of federal funds are required to have a Single Audit and to submit to the Federal Audit Clearinghouse (FAC) by the federally required deadline.
Condition/Cause: As a result of the delayed preparation of the SEFA, the City did not submit a Single Audit reporting package to the FAC by the federally required deadline. Non-compliance with the reporting requirements is a violation of federal grants terms and conditions. The City’s continued failure to meet this filing requirement could affect future federal funding.
Recommendation: We recommend that the City reviews their grant management policies and procedures. A reconciliation of grant expenses should be completed monthly. In addition, complete and accurate files should be maintained for each grant so that an accurate and complete SEFA can be prepared at year-end that ties to the general ledger. The SEFA should be completed in a timely manner so that it can be audited and then submitted to the FAC as required.
Response: City staff will update grant management policies and procedures to include monthly reconciliations of grant expenses and will maintain complete grant files so that an accurate and complete SEFA that ties to the general ledger can be prepared annually for audit and required reporting. The SEFA will be completed in a timely manner and the Single Audit will be submitted to the FAC as required.