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.