Finding Text
2024-006 Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Criteria: The District is responsible for establishing and maintaining internal controls and for the fair presentation of the SEFA in accordance with Uniform Grant Guidance. Condition: There were errors on the SEFA related to the expenditures of certain federal programs. Additionally the SEFA was not completed by the District in a timely manner. Cause and Effect: The finance department has experienced significant turnover and also has a limited number of staff. Failure to establish an effective internal control can enable material misstatements to occur in the SEFA. Significant adjusting entries were needed in order to properly report grants on the District’s financials. Recommendation: We recommend the District strengthen its process for reviewing the SEFA to ensure compliance with Uniform Grant Guidance. Auditee Response: We agree with this finding and will work to resolve this in future audits. See Corrective Action Plan.