Finding Text
--Type of Finding: Significant deficiency in internal control over compliance --Criteria: The Uniform Guidance, under 2 CFR Part 200 Subpart F, requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended. --Condition and Context: While performing audit procedures on the SEFA, we noted the SEFA included non-federal portion of some awards. Total federal awards reported on the SEFA prepared by management was overstated by $126,319. --Cause of Condition: The internal controls in place for the preparation of the SEFA were not properly implemented in order to prevent or detect and correct material misstatements on the SEFA. --Effect of Condition: The SEFA erroneously included non-federal awards and was materially misstated at the commencement of the audit because it improperly included non-federal expenditures totaling $126,319. --Questioned Costs: None. --Repeat Finding: No. --Recommendation: We recommend management design and implement internal controls to ensure all federal assistance is identified at the program level and in the finance department. We also recommend that the Organization develop a process for detail reviewing the information included on the SEFA, including verification of federal award and expenditure amounts with grantors as necessary. --Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.