Finding 1089056 (2024-001)

Program Name: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Federal loans are required to be reported on the Schedule of Expenditures of Federal Awards. (Section 200.502(b) of 2 CFR Part 200). Condition: The Organization had a federal loan of $500,000 received in a prior year that was not originally included on the Organization’s Schedule of Expenditures of Federal Awards (SEFA). This is a repeat finding of item 2023‐001. Cause of Condition: The Organization failed to properly identify the loan as needing to be reflected on the SEFA. Potential Effect of Condition: The Organization’s federal loan not being included in the audited SEFA. Recommendation: The Organization should establish policies and procedures to carefully review loans and consider whether they should be included on the SEFA. Views of Responsible Officials: Management has acknowledged that this should be included in the Schedule of Expenditures of Federal Awards and will include it as required in any applicable year. Management will implement federal grant and loan management policies and procedures and provide training to staff responsible for completing the Schedule of Expenditure of Federal Awards (SEFA) to ensure all federal grants and loans are included in the SEFA (pursuant to Section 200.502(b) of 2 CFR Part 200). Additionally, management will create and maintain an electronic repository of relevant federal grant and loan information that contains key information relating to each federal program to assist in preparing the SEFA.