Finding Text
Finding 2003-04: Schedule of Expenditures of Federal Awards
Information on the Federal Program: All programs in the 2023 SEFA. See Finding 2023-003
Questioned Costs: None.
Context: The exception noted during the audit pertained to all programs under the SEFA for the year
ended September 30, 2023.
Identification as a Repeat Finding, if Applicable: Not applicable.
Criteria or Specific Requirement: In accordance with 2 CFR Section 200.508 (b), HIPS is required to
prepare appropriate financial statements, including the Schedule of Expenditures of Federal Awards
(SEFA).
Condition: During the audit, we noted that HIPS experienced difficulty in preparing and ensuring that
all Federal expenditures were properly included in the Schedule of Expenditures of Federal Awards. As
a result, a significant amount of time was spent by management during the audit process reconciling
the schedule, resulting in an audit delay.
Cause: HIPS experienced turnover during the last fiscal year, specifically related to employees
responsible for financial reporting and tracking of Federal award expenditures.
Effect or Potential Effect: HIPS experienced difficulty in preparing an accurate SEFA.
Recommendation: We recommend that each Federal program should have a distinct code set up in
the accounting system in order to track the direct costs attributable to that program. We also
recommend that management properly reconcile Federal expenditures during year on a consistent
basis in order to prepare the Schedule of Expenditures of Federal Awards on a timely basis.