Finding Text
U.S. Department of Housing and Urban Development #14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants 2024-003 Inaccurate Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Criteria: Per 2 CFR §200.510(b), the auditee must prepare a SEFA that includes the total federal awards expended, the name of the federal agency, the Assistance Listing Number, the pass-through entity identifying number (if applicable), and other relevant details to ensure complete and accurate reporting. Condition: During our audit of the federal awards received by the Organization, we noted that the SEFA was not prepared. Cause: The failure to prepare the SEFA was due to a lack of formal procedures and oversight in Single Audit requirements. Effect: Errors in the preparation of the SEFA could lead funding agencies to misinterpret the level of spending for a particular program for the period under audit. Additionally, the identification of major federal award programs chosen for specific compliance testing could be erroneous, depending on the misstatement in the total amount of federal expenditures for the year. Questioned Costs: None noted. Recommendation: We recommend that staff responsible for federal grant reporting receive additional training on Single Audits and SEFA preparation. Views of Responsible Officials and Planned Corrective Actions: Management agrees and has adopted a SEFA tracking template. Corrective Action: Track federal expenditures monthly by funding source and Assistance Listing Number (ALN), reconcile SEFA totals to the general eldger, and train staff on Uniform Guidance.