Finding Text
U.S. Department of Education - 84.177B Independent Living Services for Older Individuals who are Blind
U.S. Department of Health and Human Services - 93.071 Benefits Enrollment Center, 93.369 ACL Independent Living State Grants, 93.432 Center for Independent Living, 93.958 Block Grants for Community Mental Health Services, 93.959 Substance Abuse Prevention and Treatment Block grant
2024-003 Inaccurate Preparation of the Schedule of Expenditures of Federal Awards (SEFA)
Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes the total federal awards expended, the name of the federal agency, the Assistance Listing Number, the pass-through entity identifying number (if applicable), and other relevant details to ensure complete and accurate reporting.
Condition: During our audit of the federal awards received by the League, we noted that the SEFA was not prepared in accordance with the requirements of 2 CFR Part 200, Subpart F. Specifically, the initial SEFA provided to auditors omitted two federal programs and included inaccurate amounts for one other programs. In addition, required elements for the federal agency and pass through entities were missing.
Cause: The errors occurred due to a lack of formal procedures and oversight in compiling and reviewing the SEFA. The League relied on documents that were not reconciled to the general ledger or grant agreements.
Effect: Errors in the preparation of the SEFA could lead funding agencies to misinterpret the level of spending for a particular program for the period under audit. Additionally, the identification of major federal award programs chosen for specific compliance testing could be erroneous, depending on the misstatement in the total amount of federal expenditures for the year.
Questioned Costs: None noted.
Recommendation: We recommend that the League implement a formal process for preparing the SEFA that includes reconciling the schedule to the general ledger and grant records. In addition, staff responsible for federal grant reporting should receive training on SEFA preparation requirements under 2 CFR Part 200. Views of Rsponsible Officials and Planned Corrective Actions: See corrective action plan on page 50.