Management agrees with the finding and acknowledges that the Schedule of Expenditures of Federal Awards (SEFA) was not prepared accurately and completely in accordance with Uniform Guidance requirements. In response, the City will strengthen its procedures over SEFA preparation and review to ensure the schedule is complete, accurate, and supported by underlying accounting records. Corrective action will include the following: 1. Establish a centralized federal awards listing - Management will maintain a current listing of all federal awards received and expended during the fiscal year. This listing will include the federal agency, pass-through entity (if applicable), Assistance Listing number, contract or grant number, and whether the award was received directly or indirectly. 2. Implement a formal SEFA preparation process - At year-end, management will prepare the SEFA using expenditure information derived from the general ledger, grant reimbursement requests, grant agreements, and other supporting documentation. Federal expenditures will be accumulated by program and reconciled to the accounting records. 3. Perform a documented reconciliation - Prior to issuance of the SEFA, management will perform and retain a formal reconciliation of SEFA amounts to the general ledger and other supporting records to verify completeness and accuracy of reported expenditures. 4. Provide training to responsible personnel - Personnel involved in grant accounting and SEFA preparation will receive training on Uniform Guidance SEFA requirements, including requirements related to completeness, pass-through awards, Assistance Listing numbers, and presentation of federal expenditures.