Finding Text
Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the federal award to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. This includes properly identifying all federal awards subject to the Uniform Guidance and fairly presenting the required information in the schedule of expenditures of federal awards (SEFA).
Condition: It was noted that there was an omission of a federal grants with expenditures totaling $66,363 from the original schedule of expenditures of federal awards.
Questioned Costs: None noted.
Context: The College did not include $66,363 in federal grants on the original schedule of expenditures of federal awards.
Effect: The Schedule of Expenditures of Federal Awards of was understated by $66,363, which resulted in an untimely audit of compliance with the types of compliance requirements described in the OMB Compliance Supplement in accordance with the Uniform Guidance.
Cause: The College lacked proper internal controls to properly identify the grant funding as federal.
Recommendation: The College should develop formally documented internal control procedures to outline a process to review the schedule of expenditures of federal awards for completeness.
View of Responsible Officials and Planned Corrective Actions: The College agrees with the above recommendation and is committed to developing and implementing these new procedures.