Finding Text
Material Weakness/Noncompliance – Schedule of Expenditures of Federal Awards Per Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), §200.510, the auditee must prepare a Schedule of Expenditures of Federal Awards (the “Schedule”) for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502, basis for determining Federal awards expended. At a minimum, the schedule must: • List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. • For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. • Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN) or other identifying number when the ALN information is not available. For a cluster of programs also provide the total for the cluster. • Include the total amount provided to subrecipients from each Federal program. • For loan or loan guarantee programs described in §200.502, basis for determining Federal awards expended, paragraph (b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. • Include notes that describe the significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in §200.414 Indirect (F&A) costs. While a Schedule was presented for audit by the District, it was determined that the District omitted a federal funded program under the Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027). The related expenditures of $1,964,254 was passed through the Appalachian Children Coalition and were materially misstated by the exclusion from the District’s originally provided SEFA. The Schedule of Expenditures of Federal Awards as presented has been adjusted for the variances. Without proper controls in place to ensure the completeness and accuracy of the Schedule, the District is at risk of excluding Federal programs or presenting inaccurate information. Lack of control procedures over the preparation of the Schedule could cause for the inaccurate determination of the need for a single audit or programs to be tested. We recommend the District work with its departments to ensure all grant activity is properly included and a materially accurate Schedule is presented for audit. Furthermore, the District can reach out to various Ohio agencies to assist in determining Federal activity. Client Response: See Corrective Action Plan.