Finding Text
Criteria
Part 2, CFR 200, 200.510 states “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.” Section 200.502 notes “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs.”
Condition
Incorrect expenditure amounts were reported as expenditures for multiple Federal awards. Incorrect, or inconsistent Assistance Listing numbers were used for Federal awards, which conflicted with the Assistance Listing numbers used to report on the Federal awards, or on grant agreements. Additionally, subrecipients were included in the client’s Schedule of Expenditures of Federal awards which were later determined to be contractors. The schedule presented as part of the audit has been revised by management to address errors noted during the audit.
Cause of Condition
The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance.
Effect of Condition
Noncompliance may impact future funding from Federal awards.
Recommendation
We recommend the Garden implement proper internal control procedures to allow proper presentation of the Schedule of Expenditures of Federal Awards in accordance with Generally Accepted Accounting Principles.