Finding Text
Receivables not accrued for reimbursement grants subject to Uniform Guidance and the tracking of federal grant expenditures was not sufficient so that an accurate Schedule of Federal Expenditures (SEFA) could be prepared by the School (Significant Deficiency in Controls and Non-compliance) Condition:
Vision Preparatory Charter School, Inc. tracked grant expenditures paid for several federal grants
subject to Uniform Guidance by the date the reimbursement request was submitted instead of by the
date the expenditure was paid and eligible for reimbursement. As a result of grant reimbursement
requests not being properly accrued, the SEFA was understated by $35,580 for the Education
Stabilization Fund Program. Also, the schedule did not include all ALN numbers. Criteria:
Uniform Guidance requires the SEFA be prepared using eligible expenditures paid in the reporting year
for federal funds subject to the Uniform Guidance. CFR Part 200.508 Auditee responsibilities state that
the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list the
individual Federal Awards by Federal Agency, including the Federal Awards expended, name of passthrough
entity, ALN number, and total amount provided to recipients. The information contained in the
Schedule of Federal Awards should be derived from and relate directly to the underlying accounting
and other records used to prepare the financial statements.Cause:
The School tracked the federal funds expenditures on a reimbursement request basis rather than an
eligibility/paid basis and did not reconcile the amounts reported on the Schedule of Federal Awards with
the amounts reported in the School’s general ledger.
Effect:
Receivables were not accrued for these expenditures and the Schedule of Federal Expenditures
prepared by the School did not reflect all of the expenditures paid in the fiscal year ended June 30,
2022 and the Schedule of Federal Awards was incorrectly prepared.
Questioned Cost: None
Context: The SEFA presented for audit was understated by $35,580 for the major program audited
(Education Stabilization Fund Grant).
Recommendation:
We recommend the School track the expenditures in Quickbooks as the expenditures are paid and we
recommend the School record receivables for all of the qualifying expenditures paid but not reimbursed
by year end and reconcile the Schedule of Federal Awards with the general ledger.