Finding Text
Noncompliance/Material Weakness in Internal Control Over Compliance Auditing Finding 2024-003 - Preparation of Schedule of Expenditures of Federal Awards Criteria: The Organization should have procedures in place to prepare an accurate Schedule of Expenditures of Federal Awards, capturing proper amounts of expenditures during the year, and reporting the correct CFDA catalog numbers. Condition: As discussed in Finding 2024-001, material audit adjustments were necessary to report the correct federal expenditures, and federal award program information was not available from management at the time of the audit. Management reviewed and took responsibility for the Schedule after the adjustments had been made. Cause: Internal controls are not designed to facilitate an accurate and complete presentation of the Schedule of Expenditures of Federal Awards. Effect: Adjustments were necessary to report the Schedule of Expenditures of Federal Awards on an accrual basis and in compliance with the Uniform Guidance. Questioned Costs: $0 Recommendation: We suggest the Organization evaluate its procedures for accumulating its federal awards and reconcile on an accrual basis to properly determine whether Single Audit thresholds are met, and whether the Schedule is prepared in accordance with the requirements of the Uniform Guidance. Views of responsible officials: Management agrees with the finding. An accrual basis Schedule of Expenditures of Federal Awards will be prepared in the future as part of year-end close procedures.