Finding Text
2024-004: Internal Control Over Schedule of Expenditures of Federal Awards Federal Grantor: U.S. Department of the Treasury Pass-Through Grantor: N/A Federal Assistance Listing Number: 21.027 Program Title: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity Identifying Number: N/A Award Year: 2024 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards (SEFA) which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. Condition: The SEFA reported by the County in the 2024 annual budget document underreported expenditures of the Coronavirus State and Local Fiscal Recovery Funds program (ALN 21.027) by $1,184,214. Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for the year ended December 31, 2024. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.