Finding Text
Finding 2022-003: Maintenance and preparation of the Schedule of Expenditures of Federal Awards (Material Weakness) Condition: Management was not able to accurately prepare Stars' Schedule of Expenditures of Federal Awards. Criteria or Specific Requirement: It is management's responsibility to prepare and maintain an accurate Schedule of Expenditures of Federal Awards Cause: The responsibility of preparation of the Schedule of Expenditures of Federal Awards within Stars was that of the prior CFO of Stars, who left Stars prior to the end of the year. Effect: The remaining members of the finance department did not know how to prepare Stars' Schedule of Expenditures of Federal Awards and did not know where to obtain this information to do so. Questioned Costs: N/A Identification as a Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that management and the board of directors evaluate the need to either provide training or determine if additional support may be needed for Stars to track and have a complete understanding of Stars' federal funding. Views of Responsible Officials and Planned Corrective Actions: The creation of the new Budget and Finance Manager position, along with the experience gained during FY22 audit, has provided most of the necessary training for the schedule of federal expenditures reporting. The prior director of administration had not left the proper SEFA reporting documentation, leaving the current financial staff at a disadvantage and needing to completely rebuild and relearn the new reporting structure. As a result of the completion of the FY22 audit, there is an full understanding of how SEFA will be compiled for FY23.