Finding Text
Finding 2023-003: Schedule of Expenditures of Federal Awards (Significant Deficiency)
Information on the Federal Program: All programs in the 2023 SEFA. See Finding 2023-002.Criteria: In accordance with 2 CFR Section 200.508 (b), USTTI is required to prepare appropriate
financial statements, including the Schedule of Expenditures of Federal Awards (SEFA).
Condition: USTTI experienced difficulty in ensuring that all Federal expenditures were identified,
categorized and included in the SEFA. Due to the amount of program codes in the accounting system,
it was difficult to identify which subprogram codes related to the various Federal programs. In addition,
indirect costs reported to the Federal granting agencies were not properly calculated. This condition
impacted the entire SEFA and is considered to be a systematic problem.
Cause: The high volume of subprogram codes was a contributing factor to the error as well as the
improper calculation of the indirect costs on the grants.
Effect: USTTI experienced difficulty in preparing an accurate SEFA.
Context: USTTI does not have processes and procedures in place to prepare an accurate SEFA.Questioned Costs: None.
Identification as a Repeat Finding: Yes. See Finding 2022-002.Recommendation: We recommend USTTI prepare its SEFA on a quarterly basis in accordance with
the Uniform Guidance, and it should be reviewed and approved by an individual in a supervisory
capacity with knowledge of the grant program. USTTI should ensure that the review process
encompasses agreeing the amounts in the SEFA to expenses recorded in the general ledger.
Additionally, USTTI should review the indirect rate calculation to ensure that is is accurate and that
USTTI is not charging more indirect costs than allowed in accordance with the terms of its grant.