Finding Text
Significant Deficiency Internal Control Weakness and Non-Compliance Condition: Client provided more than one version of the SEFA which denotes errors to the previous version. Due to the client providing several versions of the SEFA, the final SEFA was not provided in a timely manner. Criteria: Per Code of Federal Regulations, the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with, §200.514 states, “The auditor must determine whether the financial statements of the auditee are presented fairly in all material respects in accordance with generally accepted accounting principles. The auditor must also determine whether the schedule of expenditures of Federal awards is stated fairly in all material respects in relation to the auditee's financial statements as a whole”. Providing a SEFA with errors and or omissions impairs the afore-mentioned code regulations. Cause: The organization does not have effective controls over the review of the SEFA. Effect or Potential Effect: Over/understand the financial statement and grant revenue and expenses. Auditor’s Recommendation: Management should implement a review process with accounting on a quarterly basis to assure the accuracy and consistency of the SEFA