Finding Text
2023-009 U.S. Department of Treasury, For the Period July 1, 2022 through June 30, 2023, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds
Criteria: In accordance with 2 CFR 200.510 Financial Statements, grant recipients are required to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the recipient’s financial statements. The City of Biddeford prepares their SEFA on the accrual basis of accounting.
Condition: During our testing of grant expenditures, we found one expenditure totaling $140,320 that was reported in the wrong period. We also found a credit of $27,119 that was unrelated to the State and Local Fiscal Recovery Fund (SLFRF) grant and improperly reduced grant expenditures. The initial SEFA overstated expenditures by $113,201 for the SLFRF grant. The client has made adjustments to the SEFA to correct the errors.
Cause: Improper accounting cutoff procedures and improper transaction coding caused the initial SEFA to be incorrect.
Effect: The SEFA initially overstated program expenditures by $113,201.
Recommendation: We recommend regular review of Federal grant expenditure accounts by a grant manager knowledgeable of the program to ensure proper year end cutoff and proper expense and revenue coding.
Known Questioned Costs: None
Likely Questioned Costs: None