Finding Text
Finding: 2022-009 (Significant Deficiency) Agency: All Federal Agencies ALN # and Title: All Assistance Listing Numbers Federal Award Identification # and Year: All Federal Awards Criteria: Per 2 CFR 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (“SEFA”) that includes all federal expenditures, organized by assistance listing number and must be accurate and complete. Additionally, 2 CFR 200.508(b) requires the auditee – not the auditor – to prepare the SEFA. Condition: UCCAC did not maintain an accurate Schedule of Expenditures of Federal Awards (“SEFA”). The original SEFA omitted some federal programs and misstated expenditures for others. Adjustments were required to reconcile the SEFA to the general ledger and supporting documentation. Effect: The inaccurate SEFA could result in improper identification of major programs and insufficient audit coverage, potentially leading to noncompliance with federal audit requirements. Cause: UCCAC lacked adequate internal controls over the preparation and review of the SEFA. There was no formal reconciliation process between the SEFA and the general ledger. Recommendation: We recommend that UCCAC implement formal procedures to ensure the SEFA is complete, accurate, and reconciled to the general ledger. This should include a documented review process and training for staff involved in SEFA preparation. In addition, we recommend that additional general ledger tracking codes be entered into Fund-EZ (general ledger) to track grant expenditures and that grant programs be monitored for inclusion in the SEFA. Management’s Corrective Action Plan: Management has indicated that they have put certain procedures into place as detailed in the Corrective Action Plan located in Appendix A.