Finding Text
Understated SEFA (Material Weakness) Program Information: All programs Criteria: L. Reporting- The auditee must prepare a schedule of expenditures of Federal awards (the “SEFA”) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502 Basis for determining Federal awards expended. Condition: During our audit of the financial statements for the fiscal year ending December 31, 2024, we identified that the Schedule of Expenditures of Federal Awards (SEFA) was not prepared in accordance with the requirements set forth by the Uniform Guidance (2 CFR Part 200) and was incomplete. Cause: Insufficient internal control and administrative oversight. Effect or Potential Effect: As a result of the incorrect preparation, the SEFA did not accurately reflect the federal awards expended during the fiscal year. This could potentially lead to noncompliance with Federal requirements and affect the accuracy of the financial statements. Recommendation: We recommend that the entity implement the following corrective actions: Provide training to the staff responsible for preparing the SEFA to ensure they understand the requirements of the Uniform Guidance. Establish a review process to verify the accuracy and completeness of the SEFA before submission. Utilize a checklist or other tools to ensure all required information is included in the SEFA. Views of Responsible Officials: Management agrees with the finding and the auditors’ recommendation. See Corrective Action Plan at the end of the report.