Finding Text
Questioned Costs: Not applicable
Criteria: The Uniform Guidance Federal regulations per 2 CFR section 200.510 requires, an auditee to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR section 200.502. With respect to Disaster Grant – Public Assistance Grants, nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has
approved the nonfederal entity’s Project worksheet, and (2) the nonfederal entity has incurred the eligible expenditures. Federal awards expended in years after the fiscal year in which the Project is
approved are to be recorded on the nonfederal entity’s SEFA in those subsequent years.
Universe/Population: Not applicable.
Condition: The dollar amount of federal awards expended for the Disaster Grant – Public Assistance was not reported accurately on the prepared schedule provided by management. Cause: Internal controls have not been properly established over the reconciliation of FEMA approved projects with allowable expenditures for reporting on the SEFA.
Effect: Improper reporting of expenditures resulted in an incorrect assessment of the major federal programs to be audited as the dollar threshold distinguishing type A and B programs remained volatile based on revisions and reconciliation of expenditures recorded in the fund for which disaster grant funding was to be the source of reimbursement.
Recommendations: The School Board should develop and establish a process with its outsourced administrator of FEMA funded projects to ensure the proper federal awards are reported on the SEFA.
View of Responsible Official: Management concurs with this finding, see corrective action plan dated March 27, 2024.