Finding 1221646 (2025-003)

Finding 2025-003: Significant Deficiency – SEFA reporting Federal grantor: All Federal Programs Condition: The SEFA was not complete and contained reporting errors. Specifically, the grant contract amendment numbers and award amounts reported in SEFA were inaccurate. Criteria: Per 2 CFR § 200.510(b), the SEFA must include a complete and accurate listing of federal awards expended during the fiscal year. Information reported in the SEFA should agree to supporting grant documentation and underlying accounting records. Cause: The issues appear to result from a lack of comprehensive review and reconciliation procedures during SEFA preparation. Effect: Inaccurate SEFA reporting results in noncompliance with Uniform Guidance requirements and increases the risk of errors in federal reporting, incorrect identification of federal awards, and inaccurate major program determination. Recommendation: CFILC should strengthen internal controls over SEFA preparation by implementing a formal review and reconciliation process to verify grant contract amendment numbers, award amounts, and other key grant information to executed grant agreements and supporting documentation prior to issuance. Response: CFILC agrees with the finding and is implementing enhanced review procedures to ensure the accuracy and completeness of SEFA reporting going forward.