Finding Text
AL# 93.568 Criteria ? Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the schedule of expenditure of federal awards (SEFA). Internal controls should be adequately designed and implemented to allow for the accurate and timely preparation of the SEFA. Condition ? For the year ended June 30, 2022, we reconciled the auditee prepared SEFA to underlying general ledger amounts and other records. In doing this, we noted that the expenditures were materially incorrect. Cause ? Internal controls are not designed to allow for the reconciliation of fund expenses to grant awards. Effect or Potential Effect ? As the entity?s auditors, we were requested to assist in the preparation of the SEFA and required notes. Questioned Costs ? None noted. Context ? The auditee-prepared SEFA listed expenditures for the entire grant award regardless of the fiscal year and all expenses incurred after the grant funds were exhausted. Repeat Finding ? This is a repeat finding of 2021-003 from the prior year. Recommendation ? The entity should pull the internal fund income statements by fiscal year and reconcile to the grant awards on a regular basis.