Finding Text
Criteria: Preparation of the Schedule of Expenditures of Federal Awards (“SEFA”) Condition: The SEFA, as prepared by Washington County, Arkansas, Federal Programs (the “County”), was not an accurate record of total federal grants expended during the year. Cause: Formal procedures were not in place to ensure expenses were not duplicated and previously recorded. Effect or Potential Effect: Material misstatement to the SEFA, specifically related to the CRF grant. Recommendation: We recommend the County establish a comprehensive manual of accounting policies and procedures specific to the SEFA reporting that includes reconciling all grant activity to the underlying records. The County should establish a review process in order to identify and correct errors. We also recommend the County establish an annual training program for grant personnel to keep abreast of the various changes that may occur to the grant administration and reporting process.