FAC Explorer

Finding 1130707 (2024-003)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-04-07
Audit: 352825
Organization: Sunrise County Economic Council (ME)
Auditor: One River CPAS

AI Summary

  • Core Issue: Significant deficiencies were found in the preparation of the Schedule of Expenditures of Federal Awards (SEFA), leading to multiple errors in reporting.
  • Impacted Requirements: Compliance with 2 CFR 200 is essential for accurate financial statements, including proper grouping of awards and correct calculations of expenditures.
  • Recommended Follow-Up: Management should enhance training for the fiscal department, strengthen review processes, and consider hiring an accounting consultant to ensure accuracy before audit submission.

Finding Text

Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards (Significant Deficiency) Federal Award Program: All Awards Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Condition and Context: Audit procedures noted several errors in the client provided SEFA. Cause: Insufficient training and internal controls over the preparation and review process for the SEFA. Effect: The following errors were noted and corrected as a result of auditing procedures on the SEFA: • The Intermediary Relending Program and Rural Microentrepreneur Assistance Relending Program awards loan expenditures were calculated incorrectly by including the repayments and excluding the loan service income. • The CFDA #11.037 and #11.419 were not grouped with the correct Federal Grantor. • The STEM Education award had 2 CFDA #’s provided on one line. • There were multiple Federal Grantor and Program Titles that were mislabeled. Questioned Costs: None Recommendation: Management should seek appropriate training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Management should consider contracting with an experienced accounting consultant should they identify areas that require additional expertise and review after the drafting of the SEFA and prior to the submission for audit. Management should also ensure that they obtain the complete and full agreements from grantors that are signed by all parties and that clearly identify the funding source. Views of Responsible Officials and Planned Corrective Actions: Management attempted to contract with multiple accounting consultants for creating the SEFA but they were already at full capacity and were not available to assist with the creation of the report. When the relevant contract or grant award did not include the necessary information, SCEC management and program staff reached out to our contracting agencies to confirm whether federal funds were part of each award and to find out CFDA numbers and other contract information necessary to complete the form. Nevertheless, there were several errors that in the SEFA submitted to our auditors for review. For the two IRP and RMAP lending programs, the prior year balances were carried over into the FY 24 SEFA through a clerical error. The errors in item 11.037 and 11.419 are related to information we received from the contracting agency. In particular, 11.037 was listed under US Economic Development Administration according to the contracting agency and we were given the description of Economic Adjustment Assistance. The description for 11.419 was given to SCEC by the contracting agency as CDS – Congressionally Directed Spending. Finally, we provided two CFDA’s for the STEM Education award with the submission of the SEFA as we were waiting for confirmation from Program Managers about the correct CDFA numbers. The auditors were informed that we were waiting for these numbers when the SEFA was submitted. In FY24, SCEC had 29 different federal funding sources, from 14 different agencies. We are working to improve our capacity to report these awards without error before the review of our auditors.

Categories

Reporting Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 554250 2024-003
    Significant Deficiency Repeat
  • 554251 2024-003
    Significant Deficiency Repeat
  • 554252 2024-003
    Significant Deficiency Repeat
  • 554253 2024-003
    Significant Deficiency Repeat
  • 554254 2024-003
    Significant Deficiency Repeat
  • 554255 2024-003
    Significant Deficiency Repeat
  • 554256 2024-003
    Significant Deficiency Repeat
  • 554257 2024-003
    Significant Deficiency Repeat
  • 554258 2024-003
    Significant Deficiency Repeat
  • 554259 2024-003
    Significant Deficiency Repeat
  • 554260 2024-003
    Significant Deficiency Repeat
  • 554261 2024-003
    Significant Deficiency Repeat
  • 554262 2024-003
    Significant Deficiency Repeat
  • 554263 2024-003
    Significant Deficiency Repeat
  • 554264 2024-003
    Significant Deficiency Repeat
  • 554265 2024-003
    Significant Deficiency Repeat
  • 554266 2024-003
    Significant Deficiency Repeat
  • 554267 2024-003
    Significant Deficiency Repeat
  • 554268 2024-003
    Significant Deficiency Repeat
  • 554269 2024-003
    Significant Deficiency Repeat
  • 554270 2024-003
    Significant Deficiency Repeat
  • 554271 2024-003
    Significant Deficiency Repeat
  • 554272 2024-003
    Significant Deficiency Repeat
  • 554273 2024-003
    Significant Deficiency Repeat
  • 554274 2024-003
    Significant Deficiency Repeat
  • 554275 2024-003
    Significant Deficiency Repeat
  • 554276 2024-003
    Significant Deficiency Repeat
  • 554277 2024-003
    Significant Deficiency Repeat
  • 554278 2024-003
    Significant Deficiency Repeat
  • 554279 2024-002
    Significant Deficiency
  • 1130692 2024-003
    Significant Deficiency Repeat
  • 1130693 2024-003
    Significant Deficiency Repeat
  • 1130694 2024-003
    Significant Deficiency Repeat
  • 1130695 2024-003
    Significant Deficiency Repeat
  • 1130696 2024-003
    Significant Deficiency Repeat
  • 1130697 2024-003
    Significant Deficiency Repeat
  • 1130698 2024-003
    Significant Deficiency Repeat
  • 1130699 2024-003
    Significant Deficiency Repeat
  • 1130700 2024-003
    Significant Deficiency Repeat
  • 1130701 2024-003
    Significant Deficiency Repeat
  • 1130702 2024-003
    Significant Deficiency Repeat
  • 1130703 2024-003
    Significant Deficiency Repeat
  • 1130704 2024-003
    Significant Deficiency Repeat
  • 1130705 2024-003
    Significant Deficiency Repeat
  • 1130706 2024-003
    Significant Deficiency Repeat
  • 1130708 2024-003
    Significant Deficiency Repeat
  • 1130709 2024-003
    Significant Deficiency Repeat
  • 1130710 2024-003
    Significant Deficiency Repeat
  • 1130711 2024-003
    Significant Deficiency Repeat
  • 1130712 2024-003
    Significant Deficiency Repeat
  • 1130713 2024-003
    Significant Deficiency Repeat
  • 1130714 2024-003
    Significant Deficiency Repeat
  • 1130715 2024-003
    Significant Deficiency Repeat
  • 1130716 2024-003
    Significant Deficiency Repeat
  • 1130717 2024-003
    Significant Deficiency Repeat
  • 1130718 2024-003
    Significant Deficiency Repeat
  • 1130719 2024-003
    Significant Deficiency Repeat
  • 1130720 2024-003
    Significant Deficiency Repeat
  • 1130721 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $992,378
21.027 Coronavirus State and Local Fiscal Recovery Funds $219,639
10.767 Intermediary Relending Program $190,115
10.870 Rural Microentrepreneur Assistance Program $178,053
12.002 Procurement Technical Assistance for Business Firms $106,082
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $79,030
10.351 Rural Business Development Grant $74,892
20.205 Highway Planning and Construction $48,571
90.601 Northern Border Regional Development $42,981
32.011 Affordable Connectivity Outreach Grant Program $38,139
11.472 Unallied Science Program $35,265
11.008 Noaa Mission-Related Education Awards $33,565
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $31,459
15.939 Heritage Partnership $25,284
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $18,643
11.037 Chips Incentives Program $13,968
10.310 Agriculture and Food Research Initiative (afri) $10,306
97.039 Hazard Mitigation Grant $8,737
84.116 Fund for the Improvement of Postsecondary Education $6,761
47.083 Integrative Activities $6,240
10.868 Rural Energy for America Program $5,881
11.419 Coastal Zone Management Administration Awards $2,412
47.076 Stem Education (formerly Education and Human Resources) $2,269
59.059 Congressional Grants $823