Finding Text
We recommend certain improvements related to the preparation and review of the Organization?s Schedule of Expenditures of Federal Awards and State Financial Assistance. Condition: The Organization incorrectly calculated the expenditures for one contract that was subject to federal single audit reporting requirements. Criteria: Internal controls should be in place to provide reasonable assurance that all expenditures subject to federal single audit requirements are correctly included on the Schedule of Expenditures of Federal Awards and State Financial Assistance. Cause: We understand that due to a formula error on a spreadsheet, management inadvertently miscalculated the expenditures of one contract as it relates to the Organization?s responsibilities pursuant to the federal single audit reporting requirements, which was not identified in the review of the Schedule of Expenditures of Federal Awards and State Financial Assistance. Effect: The condition presents an elevated risk of the Organization preparing an inaccurate Schedule of Expenditures of Federal Awards and State Financial Assistance. Context: The auditor identified the miscalculation of the contract through its designed auditing procedures. No other similar exceptions were noted as a result of audit procedures. Repeat Finding: This finding is not a repeat finding from a prior audit. Recommendation: We recommend that the Organization carefully review the Schedule of Expenditures of Federal Awards and State Financial Assistance to ensure all expenditures subject to federal single audit requirements are properly included. Views of Responsible Officials and Planned Corrective Action: The Organization agrees with the finding and will develop additional procedures for the review of the Schedule of Expenditures of Federal Awards and State Financial Assistance.