Finding Text
2025-003 Inaccurate SEFA Identification of the federal program: All federal programs Criteria or specific requirement (including statutory, regulatory, or other citation): The SEFA should be complete and accurate, supported by accounting records, and reconciled to the general ledger. Condition: During the audit, it was identified that the SEFA did not accurately reflect all federal expenditures incurred during the period under audit. Cause: Timely reconciliations were not performed timely and existing review procedures were not effective in identifying discrepancies between the general ledger and supporting documentation. Effect or potential effect: Management was required to perform additional review of the effected accounts, transactions, and balances to ensure accuracy of the SEFA. Questioned costs: No questioned costs were identified. Context: This finding was identified during audit procedures performed over all federal programs administered by the Organization. Variances were noted across multiple federal programs, resulting in adjustments to the SEFA. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: Management should implement procedures to ensure the SEFA is being reconciled to the general ledger on a regular basis and that amounts reported are complete, accurate, and supported by appropriate documentation prior to reporting. Views of Responsible Officials: Metro United Way, Inc. agrees with the finding and the recommendation noted above has been implemented for fiscal year-end April 30, 2026