Finding Text
2024-004. Schedule of Expenditures of Federal Awards Criteria or specific requirement (including statutory, regulatory, or other citation): It is the responsibility of City management to design and implement internal controls that provide reasonable assurance over the accuracy of the schedule of expenditures of federal awards (SEFA). Condition and context: During the course of the City’s audit as of and for the year ended December 31, 2024, it was determined that federal expenditures related to the United States Department of Highway Planning and Construction, as passed through the State of New York, were incorrectly reported on the original SEFA provided by management to begin the audit. Cause: Internal controls not operating as designed, whereby the City was unable to ensure that the SEFA was accurate. Effect or potential effect: As a result of the error, material modifications were required to the SEFA prior to the issuance of the City’s single audit report. Questioned costs: None. Identification as a repeat finding, if applicable: Not applicable. Recommendation: Policies and procedures should be implemented by City management to verify the accuracy of the SEFA. Views of responsible officials: As detailed in the Corrective Action Plan, management has agreed to the findings and recommendations noted above.