Finding 381087 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-19

AI Summary

  • Core Issue: Errors in the Foundation’s Schedule of Expenditures of Federal Awards (SEFA) led to multiple revisions and adjustments.
  • Impacted Requirements: The SEFA must accurately reflect federal grant expenditures for government reporting.
  • Recommended Follow-Up: Implement clear procedures for SEFA preparation and add a second review layer to catch errors before finalization.

Finding Text

Condition: Our examination of the Foundation’s Schedule of Expenditures of Federal Awards (SEFA) found various errors that resulted in adjustments to both direct and indirect grant revenue. We received several iterations of the SEFA and adjustments had to be made to each version before a complete SEFA was received that reconciled to the general ledger. Criteria: The SEFA is used to determine the amount expended for federal grants that is reported to the government. Cause: There is a lack of established procedures for preparing and reviewing the SEFA. Effect: Multiple iterations of the SEFA were received and adjustments had to be made to each version causing a delay in finalizing our single audit procedures. Recommendation: We recommend management implement procedures to prepare an accurate SEFA and a second layer of review is performed before the SEFA is finalized to identify any inaccuracies or inconsistencies with the general ledger. Views of Responsible Officials and Planned Corrective Actions: The Foundation is strictly enforcing a policy that AMEX receipts from staff are due three days after the statement is posted to ensure all expenditure information is received and recorded timely for purposes of inclusion in the SEFA.

Corrective Action Plan

EF is strictly enforcing a policy that AMEX receipts from staff are due three days after the statement is posted to ensure all expenditure information is received and recorded timely for purposes of inclusion in the SEFA.

Categories

Reporting

Other Findings in this Audit

  • 381088 2023-003
    Material Weakness
  • 381089 2023-004
    Material Weakness Repeat
  • 381090 2023-005
    Significant Deficiency
  • 381091 2023-006
    Significant Deficiency Repeat
  • 957529 2023-002
    Material Weakness
  • 957530 2023-003
    Material Weakness
  • 957531 2023-004
    Material Weakness Repeat
  • 957532 2023-005
    Significant Deficiency
  • 957533 2023-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.850 Improving Epilepsy Programs, Services, and Outcomes Through National Partnerships $3.86M