Finding Text
Finding 2022-002: Support for Schedule of Expenditures of Federal Awards in the Accounting System Information on the Federal Programs: CFDA 14.235 Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the auditee must be able to identify all Federal awards received and expenses and the Federal programs under which they were received. Condition: We noted that in the transition from the previous accounting system, certain expenditures had not been properly classified in the new system. As a result, although detailed invoices were available to support the amounts reported on the SEFA, the expenses had not been accurately classified by award within the general ledger. Cause: NEW transitioned to a new accounting software during the fiscal year. We noted that NEW encountered certain difficulties during this process. Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information within the accounting system, there is an increased potential for inaccurate reporting. Questioned Costs: Indeterminable Context: The transition to the new accounting system resulted in certain challenges. Identification as a Repeat Finding, if Applicable: Not applicable Recommendation: We recommend that NEW complete the transition to the new system and ensure that each account is properly reconciled on a monthly basis.