Finding 1179218 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-03-12

Audit: 391605

Organization: The Tacoma Rescue Mission (WA)

Auditor: JOHNSON STONE & PAGANO P S

AI Summary

Core Issue: The SEFA was overstated by $1,687,257 due to errors, misrepresenting federal award expenditures.
Impacted Requirements: The SEFA did not comply with Uniform Guidance, risking incorrect major program selection.
Recommended Follow-Up: Implement oversight procedures to ensure accurate preparation of the SEFA.

Finding Text

Preparation of Schedule of Expenditures of Federal Awards ("SEFA") Criteria The SEFA is required to be prepared in accordance with the Uniform Guidance to reflect expenditures of federal awards. Condition The original SEFA presented to the audit firm was overstated by $1,687,257 due to several errors. Context The SEFA included grant amounts that the Mission received as state funding or as a contractor. Effect The SEFA did not properly reflect the amount of federal awards as required by Uniform Guidance and had the potential to have an incorrect major program selected. Cause The Organization’s internal control over the preparation of the SEFA was not effective to verify the proper amount of federal expenditures. Auditor's Recommendations We recommend implementation of procedures to provide oversight that ensures the completion of an accurate SEFA.

Corrective Action Plan

The Senior Director of Finance, Terell Hollins, will establish and maintain a rolling SEFA workbook throughout the fiscal year that identifies each award, ALN, pass-through entity, and funding source (federal vs. non-federal), including a field to track contract amendments and their funding designation. For each new aware and for each amendment/modification, the Senior Director of Finance will review the award agreement/amendment to confirm whether the funding is federal and document the conclusion.

Other Findings in this Audit

1179217 2025-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.231	EMERGENCY SOLUTIONS GRANT PROGRAM	$312,533
97.024	EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM	$80,000