Finding Text
Finding 2023-003 Department: United States Department of Housing and Urban Development Program Name: Emergency Solutions Grant Program Federal Assistance Listing Number: 14.231 Significant deficiency: Reliance on auditor to prepare the Schedule of Expenditures and Federal Awards (SEFA) Criteria: Uniform Guidance state that the Organization being audited is responsible for preparation of the Schedule of Expenditures of Federal Awards. Condition: The Organization relies on the auditors to draft for approval the schedule of expenditure of federal awards in accordance with Uniform Guidance. Cause: Due to time constraints and delinquency of the audit, the Organization decided to have the external auditors prepare the SEFA. Effect: By relying on the external auditors to prepare the SEFA, the Organization is considering the external auditors a part of its internal controls over financial reporting. Questioned Costs: None. Repeat Finding: Previously reported as finding 2022-002. Recommendation: Since the Organization has the knowledge and capability, we recommend the Schedule of Federal Expenditures be prepared prior to the audit. Views of Responsible Officials: We agree with this finding and will prepare a complete SEFA prior to future audits.