Finding Text
Schedule of Expenditures of Federal Awards Reconciliation.
Criteria: Section 200.510(b) of the Uniform Guidance mandates that auditees prepare a Schedule of Expenditures of Federal Awards (“SEFA”) for the period covered by the auditee's financial statements. This schedule must include the total federal awards expended.
Condition: The SEFA initially provided was inaccurate and incomplete for the fiscal year-end.
Cause: Neighborhood Legal Services of Los Angeles County (“NLSLA”) failed to thoroughly review the renewal funding sources for the State Bar of California Homelessness Prevention (HP) program and the passthrough funding for the Stay Housed Los Angeles Eviction Defense Program (SHLA EDP) from the lead agency, Legal Aid Foundation of Los Angeles. The original funding for both projects was not federally based. However, during COVID-19, these programs continued through federal funding.
Effects: Failure to review and reconcile the SEFA may result in noncompliance with applicable standards.
Recommendation: Implement procedures to designate management members responsible for the completion and accuracy of the SEFA. All government grants and contracts should be thoroughly reviewed to determine the funding source. Those identified as federal should be included in the SEFA.
Views of Responsible Officials: In 2024, NLSLA will conduct a thorough review of all renewal contracts to confirm the funding source, whether NLSLA is the lead agency or a passthrough agency. If the renewal funding source is federally based, NLSLA will request a Notice of Federal Award to ensure proper inclusion in the annual SEFA and related Single Audit report.