Finding 1092021 (2021-003)

Statement of Condition: The organization prepared the schedule of expenditures of federal awards (SEFA) for fiscal year ended 2021. Based on our review of the schedule of expenditures of federal awards, we noted that certain pass-through contract numbers were not accurate on the SEFA. We also noted that certain Assistance Listing Numbers (ALN) were not correct and/or identified as federal funds, instead of county and state funds. Criteria: The Uniform Guidance requires the auditee to prepare a SEFA for the period covered by the auditee's financial statements that includes certain required elements, including total federal awards expended for each individual federal program. The Uniform Guidance requires the auditor to determine whether the auditee's SEFA is fairly stated, in all material respects, in relation to the audited entity's financial statements as a whole. In addition, the Uniform Guidance places the responsibility for identifying major programs on the auditor, and the SEFA serves as the primary basis for the auditor's major program determination. Therefore, appropriate major program determination by the auditor is dependent on the accuracy and completeness of the information in the SEFA. Effect of Condition: The Uniform Guidance requires the auditor to determine whether the auditee's SEFA is fairly stated, in all material respects, in relation to the audited entity's financial statements as a whole. Due to incorrect classification of federal and state funded contracts, the SEFA may not be accurate and complete. Cause of Condition: The organization had turnover in the person preparing the SEFA and did not have someone independently review the SEFA to identify proper ALN’s and state funding included in the grant documents. Recommendation: We recommend that the organization provide proper training in compiling and preparing the SEFA which includes identifying the correct ALN’s and pass-through contract numbers, and identifying those contracts that are state funded. Views of Responsible Officials: The organization agrees with this finding. Refer to corrective action plan on page 43.