Finding Text
Criteria: Under Uniform Guidance, auditees are required to submit a Schedule of Expenditures of Federal Awards that include all federal monies expended during the fiscal year. Condition: During the Single Audit, we noted errors in the Schedule of Expenditures of Federal Awards that required several revisions. Context: During the Single Audit, it was noted that due to recent changes in key financial personnel, the Companies had difficulty in locating supporting documentation needed to prepare the Schedule of Expenditures for Federal Awards. Cause: The Companies did not have a formal process to track and report federal expenditures needed to prepare the Schedule of Expenditures of Federal Awards. Effect: The absence of proper formal tracking of federal expenditures, with the recent changes in key financial personnel, could result in the inaccurate reporting of expenditures over federal awards. Recommendation: The Companies should enhance their processes and internal controls over intake and tracking of grants, including identification as federal awards, to produce a complete and accurate Schedule of Expenditures of Federal Awards. Views of Responsible Official: See management’s Corrective Action Plan on page 38.