FAC Explorer

Finding 1166842 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2025-12-29
Audit: 377983
Organization: City of Donaldsonville (LA)
Auditor: EISNERAMPER LLP

AI Summary

  • Core Issue: The City did not provide a complete and accurate Schedule of Expenditures of Federal Awards (SEFA), which is required by Uniform Guidance.
  • Impacted Requirements: Internal controls were inadequate, leading to potential misidentification of major federal programs and inaccurate reporting to federal agencies.
  • Recommended Follow-Up: Ensure that SEFA preparation involves knowledgeable staff, categorize the general ledger by federal programs, and implement a review process for accuracy.

Finding Text

2025-002 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (“SEFA”) Criteria: Internal controls should be designed to capture the City’s federal expenditures in order to ensure that an accurate Schedule of Expenditures of Federal Awards (“SEFA”) can be prepared. Condition: Uniform Guidance section 200.510 requires the auditee to prepare a SEFA. A complete and accurate SEFA was not provided to us. Cause: The records were not maintained in a manner which allowed the SEFA to be prepared in an efficient manner to ensure accuracy and completeness. Questioned Costs: None. Effect: The SEFA is used by the auditor to determine which federal programs are to be audited as major programs and to accurately report expenditures to the federal government and granting agencies. Major programs may not be properly identified in accordance with the Uniform Guidance. Recommendation: All information should be included on the SEFA by employees familiar with the grant awards. The general ledger should be categorized by federal programs/program year in order to capture the correct expenditures by programs. A review should be performed by someone other than the preparer for accuracy and completeness. Identification of a repeat finding: This is a similar finding from the previous audit, 2024-003. View of Responsible Official: Management concurs with the finding. Controls relating to the preparation of the SEFA will be designed to capture the City’s federal expenditures in order to properly prepare the SEFA.

Corrective Action Plan

Management has hired a Grants Manager who is responsible for developing and maintaining a comprehensive schedule of all federal awards and funding sources to ensure proper tracking, monitoring, and compliance with applicable federal requirements.

Categories

Reporting

Other Findings in this Audit

  • 1166838 2025-002
    Material Weakness Repeat
  • 1166839 2025-002
    Material Weakness Repeat
  • 1166840 2025-002
    Material Weakness Repeat
  • 1166841 2025-002
    Material Weakness Repeat
  • 1166843 2025-003
    Material Weakness Repeat
  • 1166844 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.45M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $831,509
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $390,000
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $331,221
20.708 NATURAL GAS DISTRIBUTION INFRASTRUCTURE SAFETY AND MODERNIZATION GRANT PROGRAM $154,142
20.939 SAFE STREETS AND ROADS FOR ALL $91,528