Finding Text
2023-002: Internal Control Over Schedule of Expenditures of Federal Awards
Federal Grantor: U.S. Department of Agriculture (USDA), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Justice (DOJ), U.S. Department of the Treasury (Treasury), U.S. Department of Health and Human Services (HHS), and U.S. Department of Homeland Security (DHS)
Pass-Through Grantor: Missouri Department of Social Services, Missouri Department of Public Safety
Federal Assistance Listing Number: 10.904, 14.225, 16.575, 16.738, 21.027, 93.563, 97.036, 97.042, 97.067
Program Title: Watershed Protection and Flood Prevention, Community Development Block Grants, Crime Victim Assistance, Edward Byrne Memorial Justice Assistance Grant, Coronavirus State and Local Fiscal Recovery Funds, Child Support Enforcement, Disaster Grants – Public Assistance (Presidentially Declared Disasters), Emergency Management Performance Grants, Homeland Security Grant Program
Pass-through Entity Identifying Number: NR206424XXXXC080, 2017-PF-33, ER130200072, 2020-MU-BX-K001, ER10220C010, 4612-DR-MO, EMK-2020-EP-0004-SL04, EMK-2021-EP-0006-18, EMK-2022-EP-0004-16, EMK-2022-EP-0004-SL02, EMK-2023-EP-0004-15
Award Year: 2022 and 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.
This finding was noted in the prior audit for the years ended December 31, 2021 and 2020 as item 2021-002.
Condition: The SEFA reported by the County in the 2024 and 2023 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:
Discrepancies in amounts reported on the 2022 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 or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied.
Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2023 and 2022.
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.