Finding Text
Federal Agency: U.S. Department of Transportation Highway Planning and Construction (Federal Aid Highway Program) Assistance Listing Number 20.205 Finding: 2022-002 Federal awards not identified on the Schedule of Expenditures of Federal Awards, (?SEFA?). (Significant Deficiency) Criteria: The Uniform Guidance requires the auditee to prepare a schedule of expenditures of federal awards for the period covered by the auditee?s financial statement. The schedule of expenditures of federal awards is the basis of the auditor?s identification of major programs. Therefore, appropriate major program determination by the auditor is dependent on the accuracy and completeness of the auditee?s information in the schedule of expenditures of federal awards. The auditee?s responsibility for preparing an accurate and complete SEFA is critical. Condition: The following federal program was not originally included in the City?s Schedule of Expenditures of Federal Awards, Assistance Listing Number 20.205 Highway Planning and Construction program. Auditors identified the federal awards in the course of field work. Cause: The award was passed through from the New York State Department of Transportation to the City?s Planning Department. Relevant grant information was not accessible to the preparers of the SEFA from those who administered the grant. Effect or Potential Effect: A Uniform Guidance compliance audit is based on the premise that management must comply with federal statutes, regulations and the terms and conditions of the federal awards it receives. Without identifying the funds as federal the City may not have complied with those requirements. Recommendation: The City should accumulate and document key information relating to each federal program to assist in preparing the SEFA, as well as to provide to auditors. Management?s Response: See corrective action plan.