Finding Text
Condition:
During the audit, it was noted that the organization did not have sufficient knowledge or formal procedures
in place to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA) as required under 2
CFR § 200.510(b). The initial SEFA provided to auditors contained errors, including incomplete or incorrect
reporting of federal expenditures.
Criteria:
In accordance with 2 CFR § 200.510(b), auditees must prepare a SEFA for the period covered by the auditee’s
financial statements. The SEFA must be complete and accurate and include all federal awards expended,
including federal agency name, assistance listing number (formerly CFDA), and amounts expended.
Cause:
The organization does not currently have formalized procedures to ensure accurate SEFA preparation. There
is limited oversight or review of the SEFA prior to submission to the auditors.
Effect:
Inaccurate or incomplete reporting of federal expenditures on the SEFA may result in noncompliance with
federal requirements, misstatement of expenditures, and potential issues with the Federal Audit
Clearinghouse or federal granting agencies.
Questioned Costs
None noted.
Recommendation
We recommend the organization develop and implement formal procedures for preparing the SEFA,
including staff training, reconciliation processes, and supervisory review. The organization should also
consider periodic internal reviews and utilize available guidance to ensure compliance with 2 CFR §
200.510(b).
Management’s Response
See corrective action plan.