Finding 1160394 (2023-003)

Finding 2023-003: Material Weakness – SEFA reporting Federal grantor: All Federal Programs Condition: The SEFA was not complete and contained reporting errors. MBDA Supplemental grants were omitted, and the awards amounts, CDFI numbers for other grants in SEFA were inaccurate. Criteria: Per 2 CFR § 200.510(b), the SEFA must include a complete and accurate accounting of all federal awards expended during the fiscal year, including correct CDFI numbers, program names, and total expenditures. Cause: The issues appear to result from a lack of comprehensive review and reconciliation procedures during SEFA preparation. Effect: Incomplete and inaccurate SEFA reporting leads to noncompliance with Uniform Guidance and increases the risk of omitted federal programs, incorrect major program determination, and errors in reporting to federal oversight agencies. Recommendation: The Chamber needs to strengthen internal control over SEFA preparation by implementing a formal review process, verifying all CDFI numbers, and ensuring all federal awards are accurately included. Views of Responsible Officials and Planned Corrective Actions: The Chamber agrees with the finding and is in the process of implementing a better review process that will be effective in 2025.