Finding Text
SIGNIFICANT DEFICIENCY 2024-003 PREPARATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Condition: The audited schedule of expenditures of federal awards was prepared by the auditors. Criteria: It is the responsibility of management to prepare the schedule of expenditures of federal awards to be audited. This criteria is derived from the audit engagement letter and demonstrates the general proficiency over supplemental information – schedule of expenditures of federal awards. Cause: Employees at Hanan Refugees Relief Group do not have experience preparing the schedule of expenditures of federal awards in accordance with Governmental Audit Quality Center Uniform Single Audit Guidance in the United States. Effect: Without staff knowledgeable about the preparation of financial statements in accordance with Governmental Audit Quality Center Uniform Single Audit Guidance, there may be material misstatements schedule of expenditures of federal awards that would not be prevented or detected in a timely manner. Recommendation: It is not cost effective for the auditee to employ additional personnel solely for financial reporting purposes. Therefore, the Organization should continue to utilize the expertise of their auditors to assist with preparation of the Schedule of Expenditures of Federal Awards. Management Response: The Organization will continue to use our auditors for these additional services.