Finding Text
2023-002: Internal Control Over Schedule of Expenditures of Federal Awards
Federal Grantor: U.S. Department of Justice (DOJ), U.S. Department of the Treasury (Treasury), and U.S. Department of Homeland Security (DHS)
Pass-Through Grantor: Missouri Department of Public Safety
Federal Assistance Listing Number: 16.738, 21.027, 21.032, 97.036, and 97.042
Program Title: Edward Byrne Memorial Justice Assistance Grant Program; Coronavirus State and Local Fiscal Recovery Funds; Local Assistance and Tribal Consistency Fund; Disaster Grants – Public Assistance (Presidentially Declared Disasters); Emergency Management Performance Grant
Pass-through Entity Identifying Number: 15PBJA-22-GG-00640-MUMU-054; DR-4665-MO; EMK-2022-EP-00004-073; EMK-2023-EP-0004-063
Award Year: 2023
Questioned Costs: None
Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards (SEFA) which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA.
Condition: The SEFA reported by the County in the 2024 annual budget documents contained errors in amounts of federal expenditures reported.
Discrepancies in amounts reported on the 2023 SEFA and amount supported by underlying accounting records are summarized as follows:
Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records and controls for identifying and tracking expenditures of federal awards.
Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for the year ended December 31, 2023.
Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.