Finding Text
2022-003 PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AL Number and Title: 15.614 Coastal Wetland Planning, Protection, and Restoration Federal Grantor Name: United States Department of the Interior Pass Through Entity: Washington Department of Ecology Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR 200 (Uniform Guidance), requires auditees to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee?s financial statements. Condition: The Trust did not prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) for the year ending December 31, 2022. Effect: An incomplete and inaccurate SEFA caused a delay in the conduct and completion of the annual audit and introduced the risk of the inclusion of incorrect programs for compliance testing and material errors in the year-end audit report. Cause: As noted in finding 2022-001, lack of a regular review and reconciliation of grant arrangements and contracts resulted in material misstatements of grant revenue, grants and accounts receivable, and assets. These misstatements were then included in SEFA totals. Recommendation: We recommend that the Trust provide specific training to accounting personnel in the preparation and reporting requirements for the SEFA. The Trust should also implement a process to identify all federal sources of funds, when awarded, and track, report, and include these awards in the year-end SEFA. As recommended in finding 2022-001, the Trust should implement regular reconciliation procedures for all grants and contracts. Questioned Costs for Finding 2022-003: No questioned costs were noted for this finding.