Finding Text
Finding No. 2023-002: Improper Preparation of the Schedule of Expenditures of Federal Awards – Material Weakness in Internal Control over Compliance
Criteria
Nonfederal entities must record expenditures related to ALN 97.036 on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s Project, and (2) the nonfederal entity has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the Project is approved are to be recorded on the nonfederal entity’s SEFA in those subsequent years.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED)
Finding No. 2023-002: Improper Preparation of the Schedule of Expenditures of Federal Awards – Material Weakness in Internal Control over Compliance (continued)
Condition and Context
Expenditures related to ALN 97-036 which met both requirements listed above during the year ended June 30, 2023, were not included on the SEFA.
Cause
Internal controls were not designed effectively to ensure that the SEFA was complete.
Effect
The SEFA was understated by $196,367 which could impact major program determinations and required coverage to be tested.
Questioned Cost
None.
Repeat Finding
No.
Recommendation
We recommend that the College enhance its completeness review process of internal control to ensure that the SEFA is complete.
Views of Responsible Officials
See corrective action plan.