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.