Finding Text
Program name: State and Local Fiscal Recover Funds Assistance Listing: 21.027, 14.239, 14,231 Federal award Identification number: All Federal award year: All Federal awarding agency: U.S. Department of Treasury and U.S. Department of Housing and Urban Development Criteria: In accordance with 2 CFR 200.510(b), the auditee must prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) that include the total federal awards expended for each federal program, the assistance listing number (ALN), the name of the federal agency, and the pass-through entity identifying number. Accurate SEFA reporting is essential to support the auditor's responsibility under 2 CFR 200.518 major program determination and for federal oversight. Condition: The Organization failed to include the correct amount of expenditures and the ALN numbers. The awards were identified as federal during the current audit; however, the Organization failed to include the ALN in the current year’s SEFA. After additional inquiry and evaluation, they were determined to fall under ALN 14.239, 14.231 and 21.027. Cause: There were deficiencies in the Organizations's internal controls over the SEFA preparation, specifically identifying the current ALN number for each federal award. The absence of the assistance listing number indicates inadequate review and verification procedures. Effect or Potential Effect: Incomplete and inaccurate SEFA reporting may lead to noncompliance with Uniform Guidance requirements and increases the risk of omitted or misclassified programs subject to audit. Missing ALNs may also hinder proper audit coverage and oversight by federal and pass-through entities. Repeat finding: This is not a repeat finding. Perspective: This issue affected three federal awards and represents a systemic control issue over SEFA preparation. There is a reasonable possibility that similar issues could recur if not addressed. Questioned costs: There are no questioned costs associated with this finding. Perspective: This issue affected two federal awards and represents a systemic control issue over SEFA preparation. There is a reasonable possibility that similar issues could recur if not addressed. Recommendation: We recommend that the Organization: Enhance internal controls over the SEFA preparation process to ensure federal programs are accurately identified, classified, and reported, including verification of ALNs. Designate responsibility within the finance team for verifying the federal nature of all awards and ensure ongoing training on SEFA and Uniform Guidance Requirements. Management’s response and corrective action plan (unaudited): See corrective action plan