Finding Text
Finding: 2024-002 Reporting Information in the Schedule of Expenditures of Federal Awards “SEFA” Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting to ensure that all federal awards with expenditures are identified and reported in the SEFA. Condition: During the current year audit it was determined that: 1. Numerous requests were made of management to identify the population of all Federal Expenditures, including pass thru entity and aggregation of awards by Assistance Listing Number. 2. While performing the December 31, 2024 audit it was noted that the SEFA for the December 31, 2023 audit appears to not include all expenditures for the year. Cause: The Organization has had staffing issues during the year and last year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2024. Recommendation: The Organization needs to devote more resources to the finance department so that adequate staffing levels can be maintained by qualified individuals. Views of Responsible Officials: See Attachment A.