Finding 1147452 (2024-001)

Preparation of and Internal Controls Over Monthly Invoicing and SEFA Preparation Significant deficiency Condition: As a result of our audit procedures and review of the SEFA, we proposed adjustments to the SEFA, which resulted in a material change in total expenditures of federal awards. Additionally, for two months, the Organization didn't update costs incurred to be billed to the federal government on their monthly invoicing. Criteria: 2 CFR Part 200 Cause: There was not an independent review of the SEFA by someone other than the preparer. Effect: Audit adjustments were required for the SEFA to be materially correct in accordance with 2 CFR Part 200.510(b). Recommendation: We recommend that prior to sending the SEFA to the auditors, management perform a detailed review of the SEFA, general ledger, and monthly invoicing spreadsheets for each federal program included on the SEFA, to ensure the reports are consistent and the SEFA is complete and accurate. If possible, this review should be completed by an individual who did not prepare the SEFA. View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.