Finding 1157502 (2025-006)

2025-006 - Preparation of Schedule of Expenditures of Federal Awards (SEFA) Criteria: Governments that are subject to the Single Audit Act are required to prepare and have audited a Schedule of Expenditures of Federal Awards (SEFA). Condition: The Township was unable to provide a complete list of federal grant revenues and expenditures that reconciled to the financial statements. Data provided by the Township was conflicting and incomplete for the preparation of the Schedule of Expenditures of Federal Awards (SEFA), requiring several revisions to correct errors in the total federal awards expended. Cause: The Township did not understand the requirements. Effect: A significant amount of time went into gathering the correct data to support the SEFA. Conflicting and incomplete data resulted in inefficiencies during the single audit. Questioned Costs: This finding does not result in questioned costs. Recommendation: We recommend the Township become familiar with all grants and keep track of expenditures and revenues for each grant so they can properly be reported on the SEFA. View of Responsible Officials: Management is in agreement and will work to provide more accurate and complete data for the SEFA.