Finding 1218248 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-06-23

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards (SEFA) contained incorrect Assistance Listing Numbers (ALNs), leading to misidentification of federal programs.
  • Impacted Requirements: Compliance with 2 CFR 200.510(b) was not met due to insufficient review procedures during SEFA preparation.
  • Recommended Follow-Up: Management should establish verification procedures to ensure ALNs match federal award documentation before finalizing the SEFA.

Finding Text

Finding 2025-001 – Accuracy of Schedule of Expenditures of Federal Awards (SEFA) Compliance Requirement: Reporting Internal Control Deficiency: Significant Deficiency - Insufficient review over SEFA preparation Compliance Finding: SEFA reported incorrect Assistance Listing Numbers (ALNs) Questioned Costs: None Criteria: Per 2 CFR 200.510(b), auditees must prepare a SEFA that accurately identifies federal programs by the correct ALN. Condition: The SEFA submitted for the audit included incorrect ALNs for certain federal programs which misidentified a Type A program and omitted a major program. Cause: The errors appear to have resulted from inadequate procedures to verify ALNs against federal award documentation during SEFA preparation. Effect: Incorrect ALNs may result in inaccurate identification of federal programs and increase the risk of misidentification in major program determination, potentially affecting audit scope and compliance conclusions. Recommendation: Management should implement procedures to verify that ALNs reported on the SEFA agree to authoritative federal award documentation prior to finalization. Management’s Response and Corrective Action Plan is found on page 28-29.

Corrective Action Plan

Finding 2025-001 – Accuracy of Schedule of Expenditures of Federal Awards (SEFA) The ALN numbers identified as incorrect were on 16.588 & 16.575 under the Violence Against Women Formula Grant. These two numbers were inadvertently transposed during preparation of the SEFA. Out of the 20 ALN numbers reported, only these two were inaccurate. All expenditures reported on the SEFA were based on actual expenditures incurred consistent with prior guidance provided by the auditor. During the previous audit cycle, VALOR’s accountant sought clarification regarding whether expenditures should be reported based on actual expenditures or reimbursement amounts and was instructed to use actual expenditures incurred. In accordance with 2 CFR 200.510(b), auditees must prepare a SEFA that accurately identifies programs by the correct ALN and reports expenditures based on actual amounts expended from federal awards. Except for the inadvertent transposition of the two ALN numbers noted above, the SEFA was prepared in compliance with these requirements. As a corrective action, beginning with the next SEFA report for the 2025-2026 fiscal year, the SEFA will be prepared by the Senior Accountant, Karen Sayers, and reviewed by both the Director of Operations, Rosemary Gonzales, and the organization’s CPA, Kim Jones, prior to submission to verify the accuracy of all ALN numbers and reported amounts.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1218247 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.524 LEGAL ASSISTANCE FOR VICTIMS $365,319
93.497 FAMILY VIOLENCE PREVENTION AND SERVICES/ SEXUAL ASSAULT/RAPE CRISIS SERVICES AND SUPPORTS $254,184
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $250,000
16.582 CRIME VICTIM ASSISTANCE/DISCRETIONARY GRANTS $220,658
16.052 RESTORATIVE PRACTICES TO ADDRESS DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING $205,958
16.556 STATE DOMESTIC VIOLENCE AND SEXUAL ASSAULT COALITIONS $205,491
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $150,556
16.529 EDUCATION, TRAINING, AND ENHANCED SERVICES TO END VIOLENCE AGAINST AND ABUSE OF WOMEN WITH DISABILITIES $132,222
16.757 JUDICIAL TRAINING ON CHILD MALTREATMENT FOR COURT PERSONNEL JUVENILE JUSTICE PROGRAMS $50,000
16.526 OVW TECHNICAL ASSISTANCE INITIATIVE $25,064