Finding Text
Federal Agency: N/A Assistance Listing Number: N/A Reporting Material Weakness in Internal Controls over Compliance Criteria – 2 CFR 200.510(b) requires the auditee to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements. The SEFA must be complete and accurately present federal expenditures and other required information. Condition – During the testing of the SEFA, it was determined that federal expenditures included on the 2024 and 2025 SEFA’s were incorrectly stated for the Coronavirus State and Local Fiscal Recovery Funds program. The District incorrectly included $113,400 of federal expenditures in 2024’s SEFA that should have been included in 2023’s SEFA. The District incorrectly omitted $175,263 of federal expenditures in 2024’s SEFA. Both of these errors relate to the Coronavirus State and Local Fiscal Recovery Funds program. Cause – Management's review controls over the preparation of the SEFA were not sufficiently designed or operating effectively to ensure that all federal expenditures were appropriately reported on the SEFA in the correct fiscal year. Effect – Inaccurate preparation of the SEFA may result in incorrect federal programs being audited. Questioned Costs – None reported Context/Sampling – The omitted expenditures in 2024’s SEFA totaling $175,263 represented approximately 14% of total expenditures reported on the SEFA in 2024. Repeat Finding from Prior Year(s) – No Recommendation – We recommend a review of the control process over the SEFA take place to determine that the SEFA is being presented correctly in the audited financial statements. Views of Responsible Officials – The District will review the SEFA thoroughly to ensure that expenditures are included in the appropriate fiscal year.