Finding Text
Finding 2025-001 Material Weakness, Inaccurate Schedule Of Expenditures Of Federal Awards (The SEFA) Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) provides guidance related to preparation and reporting of a SEFA. 2 CFR Section 200.100 identifies the required elements of the SEFA, and 2 CFR Section 200.510 specifically requires that the SEFA include information on each federal award expended during the year. The County is required to prepare a complete and accurate SEFA and to have a system of internal controls, the design and operation of which allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, errors on a timely basis. Condition: The original SEFA was inaccurate, which led to a material error in the reporting of federal awards. The County incorrectly omitted the Federal Highway Planning and Construction Grant in the aggregate amount of $858,817, which affected the major program determination. Cause: The SEFA was inaccurate because the funds omitted from the SEFA originally were related to expenditures from several years ago that were obligated in 2025. Due to the time lag in the expenditures, the funds were inaccurately omitted. Effect: As a result of the errors, the SEFA was materially incorrect. Inaccurate identification of federal awards may also result in inaccurate identification of compliance requirements, risk assessments, major program determination, materiality determinations and reporting errors. Questioned Costs: None Context: N/A Identification As A Repeat Finding: N/A Recommendation: The County should strengthen its internal controls by enhancing their reconciliation process to ensure the SEFA accurately reflects federal expenditures for the fiscal year. Views Of Responsible Officials And Planned Corrective Action: The County agrees with the finding and has created a corrective action plan for the finding. See the corrective action plan included in this report.