Finding 1170164 (2024-005)

2024-005 Schedule of Expenditures of Federal Awards (Repeat Partially Resolved Prior Year Audit Finding 2023-004; Originally Reported as Finding 2020-006) Criteria: The information in the Schedule of Expenditures of Federal Awards (SEFA) should be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition and Context: The grant expenditures on the SEFA were not reconciled to the general ledger accounting system or other records used to prepare the financial statements. Cause: Revenue accounts and internal funds by grant program have been created for each reimbursement grant program. However, grant receivables were not recorded and revenue accounts for each reimbursement grant program were not reconciled to the underlying expenditures in the accounting and other records used to prepare the financial statements and SEFA. Effect or Potential Effect: The SEFA could be materially misstated if grant expenditures reported on the SEFA are not reconciled to the underlying accounting and other records used to prepare the financial statements. Recommendation: Reimbursement grant revenue accounts should be reconciled to the underlying grant expenditures on the grant request and other reports on a timely basis. Responsible Official's Response: Frequent reconciliations, along with implementation of policy and procedures, has allowed data to be accurate in the accounting system while matching data information on government reports since the finding from prior year. The organizational staff has adequately added and maintained information in the accounting software as requested from previous finding on prior year, which should meet OMB requirements.