Finding Text
Significant Deficiency/Noncompliance – Other 2 CFR §200.510(b) states, in part, that the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a. List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. For example, the National Institutes of Health is a major subdivision in the Department of Health and Human Services. b. For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c. Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d. Include the total amount provided to subrecipients from each Federal program. e. For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f. Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 15% de minimis cost rate as covered in §200.414. The County prepared a SEFA that contained numerous errors affecting multiple federal programs. During the audit, we identified adjustments necessary to properly report federal expenditures, including corrections to amounts reported under several federal awards. Management posted audit adjustments to correct the schedule. The aggregate effect of these adjustments was material to the SEFA. The following adjustments were made to the federal programs: Program Assistant Listing Number Adjustment Snap Cluster 10.561 $ (752,663) Edward Byrne Memorial Justice Assistance Grant Program 16.738 (85,660) Federal Transit Cluster 20.507 and 20.526 (93,774) CCDF Cluster 93.575 (145,334) Temporary Assistance for Needy Families 93.558 (1,793,257) Foster Care Title IV-E 93.658 745,981 John H. Chafee Foster Care Program for Successful Transition to Adulthood 93.674 90,437 Social Services Block Grant 93.667 (642,471) Elder Abuse Prevention Interventions Program 93.747 (1,929) Medicaid Cluster 93.778 (1,095,261) Without effective controls over SEFA preparation, federal expenditures may be improperly reported. As a result, the SEFA initially submitted for audit was misstated and required significant audit adjustment. Inaccurate SEFA reporting could affect federal oversight, management decision-making, and the auditor's determination of major programs. We recommend the County review/update their current policies and procedures, including, prior to submitting the federal schedule to the auditors, a second review of data, support and amounts be reported, to help ensure accurate information is provided.