Finding Text
Schedule of Expenditures of Federal Awards (Material Weakness) Condition The Schedule of Expenditures of Federal Awards (SEFA) was prepared without supervisor review, resulting in several auditor corrections. Criteria Segregation of duties and review procedures should be applied to federal award workpapers. Cause The Town has not designed effective internal controls with regard to federal awards. Effect Risk that the Town’s information in the SEFA is not accurate, complete, or appropriately presented in accordance with Uniform Guidance. Perspective Information Audit adjustments of $830,901 were necessary to correct the Schedule of Expenditures of Federal Awards. Recommendation Management should establish and implement internal controls with regard to federal awards. Repeat Finding Similar conditions were present in the prior year. See finding 2023-004 in Summary Schedule of Prior Audit Findings. View of Responsible Officials and Planned Corrective Action Management acknowledges the findings and we are working to create, develop, and implement stronger procedures and internal controls surrounding the Grant Fund and federal awards.