Finding Text
Criteria: Internal controls should be in place to ensure the schedule of federal awards is complete and accurate. In addition, a review of the schedule should be performed by an individual other than the individual performing the reconciliation. Condition and Context: Throughout the performance of audit procedures, the auditor identified federal awards that were not included on the schedule of expenditures of federal awards. Grant documents were not received by the accounting department to be able to track and identify the federal awards throughout the year. Cause: The Organization has limited written procedures for the acceptance and tracking of federal awards. The limited procedures lack requiring the timely communication between departments to summarize the federal award information accurately. Effect: The lack of identification of federal awards may result in the occurrence of unauthorized or inaccurate activity recorded within the Organization’s records and reflected on the interim financial statements. Recommendation: We recommend the Organization develop written policies establishing a centralized process to maintain grant records and a process to review the documents for federal funding, and track the federal grants in the aggregate to monitor the applicability of whether a Single Audit under Uniform Guidance is necessary. Management Response: Policies are being implemented to ensure appropriate identification, review process, and tracking of federal awards, see corrective action plan. Repeat Finding: This finding is a repeat of prior-year Finding 2024-004. Management's corrective action plan was scheduled for implementation at the beginning of year ended June 30, 2026 and therefore was not in effect during the year ended June 30, 2025. As a result, audit procedures continued to identify federal awards that were omitted from the Schedule of Expenditures of Federal Awards (SEFA). In addition, grant documents were not consistently provided to the accounting department, limiting management's ability to identify and track federal awards throughout the year.