Finding Text
Finding 2024-002: Schedule of Expenditures of Federal Awards (Significant Deficiency)
Information on the Federal Program: 93.243 - U.S. Department of Health and Human Services.
See Finding 2024-001. Finding 2024-002 is a significant deficiency in internal control over
compliance in addition to non-compliance related to the Reporting compliance area. There were no
questioned costs as a result of excluding the awards provided by pass-through entities.Criteria or Specific Requirement: Management is responsible for the complete and fair
presentation of the financial statements, including any supplementary information that is presented in
relation to the financial statements, such as the Schedule of Expenditures of Federal Awards (SEFA).
Also, in accordance with 2 CFR Section 200.510 (b)(2), the Council is required to include all direct
and pass-through Federal awards expended during the fiscal year in the SEFA.
Condition: During the audit management noted that several pass-through awards totaling $278,811
for the year ended June 30, 2024, had not been included on the SEFA. As a result, management
provided a revised SEFA after audit testing had begun.
Cause: The Council has not received pass-through awards in prior years and the omission appears
to be due to a misunderstanding of the SEFA reporting requirements for pass-through awards.
Effect or Potential Effect: The SEFA was missing federal expenditures of $278,811 at the start of
the audit. When the SEFA is not accurately prepared, it could have an effect on the auditor's
determination of major programs and on the auditor's sample selections.
Recommendation: We recommend that the Council enhance its procedures related to the
preparation of the SEFA to ensure all required amounts are included.
Repeat Finding: This is not a repeat finding.