Finding 1220797 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-06-29

Audit: 405509

Organization: Tacoma-Pierce County Chamber of Commerce (WA)

Auditor: JOHNSON STONE & PAGANO P S

AI Summary

Core Issue: The SEFA was overstated by $35,921 due to including non-federal expenditures.
Impacted Requirements: The SEFA did not meet Uniform Guidance standards, risking incorrect major program selection.
Recommended Follow-up: Implement procedures for better oversight to ensure accurate SEFA preparation.

Finding Text

2025-001 Preparation of Schedule of Federal 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 $35,921 due to inclusion of nonfederal award expenditures. Context The SEFA included revenue amounts that the Chamber had received through revenue streams other than a federal award. 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 Chamber'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

All grants are to be labeled as federal and non-federal when entered into the Chamber’s general ledger (Emily), and when grant documents are saved internally (Chamber Staff). Expenses associated with federal grants are to be coded and classed to those grants for accurate entry on the SEFA (Emily). The Executive Director (Tom) will be involved in the preparation of the SEFA to ensure only federal grant expenses are included, and that no expenses are omitted.

Other Findings in this Audit

1220798 2025-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
59.059	CONGRESSIONAL GRANTS	$930,000
14.218	COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS	$128,153
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$51,442