Finding Text
2023-002: Schedule of Expenditures of Federal Awards
Federal Grantor: U.S. Department of the Treasury
Pass-Through Grantor: N/A
Federal Assistance Listing Number: 21.027
Program Title: Coronavirus State and Local Fiscal Recovery Funds
Pass-through Entity Identifying Number: N/A
Award Year: 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.
Condition: The SEFA reported by the County in the 2024 annual budget documents contained an error in the amount of federal expenditures reported. Expenditures of Coronavirus State and Local Fiscal Recovery Funds of $858,705 were not reported on the 2023 SEFA.
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.
Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for the year ended December 31, 2023.
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.