Finding Text
MW2025-001 – INACCURATE REPORTING OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Federal agency name: U.S. Environmental Protection Agency Federal program title: Water Infrastructure Finance and Innovation (WIFIA) ALN: 66.958 Grant No.: N18118FL Grant Period: October 1, 2024 through September 30, 2025 Criteria Title 2 U.S, Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that the recipient of grant awards must be able to prepare an accurate schedule of expenditures and be able to identify in its accounts all federal awards and state assistance received and expended. Condition The original Schedule of Expenditures of Federal Awards (“SEFA”) provided by the City erroneously omitted the Water Infrastructure Finance and Innovation Act (“WIFIA”) federal loan program (ALN 66.958) in the amount of $44,204,486. As a result of this omission, the auditor was required to modify its audit approach in accordance with Uniform Guidance requirements and perform additional procedures to evaluate the WIFIA program as a major federal program. Accordingly, the WIFIA program was identified and tested as an additional major program under the Single Audit. Cause Lack of sufficient review controls over the preparation and review of the SEFA. Effect The SEFA was not accurately prepared and could result in incorrect reporting of expenditures to federal and state agencies.