Finding 1075617 (2023-004)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-09-27
Audit: 321962
Organization: Act for Alexandria (VA)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: Internal controls for preparing the Schedule of Expenditures of Federal Awards (SEFA) were ineffective, leading to necessary adjustments during the audit.
  • Impacted Requirements: Compliance with CFR Section 200.510(b) regarding accurate reporting of federal expenditures was not met.
  • Recommended Follow-Up: Management should enhance internal controls to ensure all federal awards are accurately captured and reported, and to prevent future errors in the SEFA.

Finding Text

Criteria: The Code of Federal Regulations (CFR) Section 200.510(b) states in part, “The auditee must also prepare a schedule of federal expenditures for the period covered by the auditee’s consolidated financial statements which must include the total Federal awards expended as determined in accordance with 200.502.” Condition: During our review of the December 31, 2023 Schedule of Expenditures of Federal Awards (SEFA) prepared by management, we noted that controls over the preparation of the SEFA were not properly designed resulting in adjustments to the SEFA for amounts passed through to subrecipients that were identified during the audit. Questioned Costs: N/A Cause and Effect: Internal controls over preparation of the SEFA are not operating effectively to ensure accuracy of the final SEFA. As a result of the condition noted above, certain adjustments were required to be made to the final SEFA. Recommendation: We recommend management review current internal controls over preparation and tracking of federal expenditures to ensure that all federal awards are captured and reported in the correct period and that internal controls are properly designed to detect and correct errors to the SEFA. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.23M