Finding 1081997 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2023
Accepted
2024-11-13

AI Summary

  • Core Issue: The Organization failed to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA), leading to potential compliance issues.
  • Impacted Requirements: Non-compliance with 2 CFR part 200, Subpart F, regarding the reporting and identification of federal funds.
  • Recommended Follow-Up: Strengthen policies for identifying federal awards and ensure timely, accurate SEFA preparation in line with OMB requirements.

Finding Text

Section III - Federal Awards Findings and Questioned Costs Finding 2023-002 Inaccurate Schedule of Expenditures of Federal Awards ("SEFA") (Material Weakness) Assistance Listing Number 14.157 - Supportive Housing for the Elderly (Section 202) Compliance requirements: Reporting Criteria: In accordance with 2 CFR part 200, Subpart F, the Organization is required to prepare a SEFA for the period covered by the auditee's consolidated and combined financial statements. At a minimum, the schedule shall:  List all individual Federal programs by Federal agency.  Include the name of the pass-through entity and the identifying number assigned by the passthrough entity for all Federal funds expended as a subrecipient.  Provide the total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listing Number information is not available.  Identify to the extent practical, the total amount provided to subrecipients from each Federal program for Federal awards received as a pass-through entity.  The Organization's processes over identifying federally funded grants and confirming federal funds did not include Federal loans, which resulted in delays in preparing a complete SEFA. Condition: During our testing, we noted that the Organization did not properly identify federal funding and applicable reporting requirements. Cause: Internal controls over the accurate preparation and completeness of the SEFA were not operating effectively or in a timely manner. Effect of potential effect: Improper SEFA and delays in identifying whether an award is federally funded could result in errors in accounting, disallowed costs, and noncompliance with Uniform Guidance requirements. Identification as a repeat finding: No. Questioned costs: $0. Context: Management did not provide a timely and complete SEFA as supporting documentation for the reporting requirements. Recommendation: We recommend that the Organization strengthen its policies and procedures for the identification of Federal awards and ensure preparation of a complete and accurate SEFA is performed in a timely manner and in accordance with the requirements of Office of Management and Budget. Views of responsible officials: Management is in the process of implementing compliance procedures that include obtaining confirmation from the federal agencies to ensure the complete and accurate preparation and presentation of the SEFA.

Categories

Questioned Costs Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 505554 2023-002
    Material Weakness
  • 505555 2023-002
    Material Weakness
  • 1081996 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $10.58M