Finding Text
Material Weakness/Noncompliance – Other 2 CFR §200.510(b) states, in part, that the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: a. List individual federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For R&D, total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. b. For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity must be included. c. Provide total Federal awards expended for each individual Federal program and the Assistance Listing Number or other identifying number when the Assistance Listings information is not available. For a cluster of programs also provide the total for the cluster. d. Include the total amount provided to subrecipients from each Federal program. e. For loan or loan guarantee programs described in §200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. f. Include notes that describe that significant accounting policies used in preparing the schedule, and note whether or not the auditee elected to use the 15% de minimis cost rate as covered in §200.414. During the audit, it was noted $2,897,918 in expenditures was not included in the unaudited SEFA. An adjustment was necessary to properly present the SEFA. Management posted the adjustment to the SEFA as presented. The aggregate effect of the adjustment was material to the program and SEFA. The County failed to properly report all federal expenditures spent during the year. Inaccurate completion of the SEFA could lead to inaccurate reporting of federal expenditures by the County and could jeopardize future federal funding. We recommend the County work with its departments to ensure all grant activity is properly included and a materially accurate Schedule is presented for audit. Furthermore, the County should reach out to various Ohio agencies to assist in determining Federal activity.