Finding Text
Criteria:
The auditee must prepare the Schedule of Expenditures of Federal Awards (SEFA) for the period under audit in accordance with the Uniform Guidance Sections 2 CFR 200.302(b) and 2 CFR 200.510(b).
Condition:
During our audit of the SEFA submitted by the Clinic, we noted that the Clinic inadvertently included nonfederal grants in the SEFA. Further, the Clinic inaccurately included out-of-performance period expenses in its SEFA due to inaccurate identification of the grant period during the SEFA preparation. The Clinic corrected the SEFA after the errors were brought to their attention.
Cause:
Wilmington was short-staffed and dealt with time constraints in the preparation and review of the SEFA.
Effect:
Inaccurate SEFA can lead to improper risk assessment and incorrect identification of major federal programs subject to audit. Revisions of the SEFA were necessary to ensure the completeness and accuracy of the federal expenditures reported.
Questioned Costs:
None.
Recommendation:
We recommend that the Clinic revisit its internal control processes over the preparation and review of the SEFA in conjunction with its other federal reporting requirements to ensure that the SEFA and all federal reports for internal and external purposes are accurate and complete.
Views of responsible officials and planned corrective actions:
The Clinic will be seeking professional consultation and guidance on a process to support and enforce monthly reconciliations of the amounts submitted for the grant with the amounts booked within the system, using appropriate grant-tracking schedules. Relevant staff will be retrained, and a monthly review will be completed by an appropriate professional and submitted to the Chief Executive Officer (CEO).
Personnel responsible for implementation: Deborah Lerner, CEO and Board of Directors
Date of implementation: July 1, 2025