Finding Text
2025-002: Internal Control Over Schedule of Expenditures of Federal Awards Federal Grantor: U.S. Department of Transportation (DOT), U.S. Department of the Treasury (Treasury) Pass-Through Grantor: Missouri Department of Transportation Federal Assistance Listing Number: 20.205, 21.027 Program Title: Highway Planning and Construction; Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity Identifying Number: BRO-R002(046) Award Year: 2025 Questioned Costs: None Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards (SEFA) which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program. The County has not implemented proper internal controls to ensure the completeness and accuracy of the SEFA. This finding was noted in the prior audit for the years ended December 31, 2021 and 2020 as item 2021-001. Condition: The SEFA reported by the County in the 2026 annual budget document contained errors in amounts of federal expenditures reported. Discrepancies in amounts reported on the 2025 SEFA and amount supported by underlying accounting records are summarized as follows: Cause: The County has not implemented a proper system of internal control over SEFA preparation, such as a reconciliation to underlying accounting records or having a separate individual review the SEFA for clerical accuracy after it has been prepared. Reasons for discrepancies in individual programs varied. Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for the year ended December 31, 2025. Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.