Finding 2022-002: Significant Deficiency- Schedule of Expenditures of Federal Awards (SEFA).
Assistance Listing: 20.507 and 20.526, Federal Transit Cluster
Federal Grantor: U.S. Department of Transportation, Federal Transit Formula Grants
Passed-through: The City of Davis
Pass-through Grantor's No.: CA-2019-107
Compliance Requirement: Reporting
Condition: Expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) were
revised during the single audit.
Criteria: Internal controls should be in place that provide reasonable assurance that the SEFA is complete
and accurate.
Cause: The SEFA was not finalized until after the single audit began. This is an ongoing issue from prior
years as we noted changes to amounts previously reported on SEFAs as well. Most of the revisions in the
current year were due to Finding 2022-001, as there were additional eligible expenses found during the
audit due to lack of internal control over closing procedures.
Effect: The expenses included on the SEFA were revised during the single audit, which could have
resulted in the auditor not selecting the correct expenses for testing and could have resulted in the single
audit not satisfying the requirements of the Uniform Guidance. Amounts reported to the Federal
Clearinghouse each year may not be accurate.
Context: $237,177 of expenses were added to the SEFA after the single audit began.
Recommendation: We recommend additional review procedures be implemented to ensure the
expenditures reported on the SEFA are complete and accurate when the single audit begins.
Corrective Action: ASUCD-Unitrans accepts the recommendation as stated.
ASUCD-Unitrans notes that this is a repeat finding from the prior fiscal year (Finding 2020-002 and 2021-
002).
For the current year, Unitrans staff completed a full reconciliation of prior year federal expenditures,
comparing expenditures and accruals on prior year capital projects to grant receivables and grant receipts
to verify the accuracy of SEFA data at fiscal year-end. However, various adjustments were made to
Unitrans’ trial balance that required subsequent adjustments to the SEFA as well (see Finding 2022-001).
Unitrans believes that the complete resolution to this finding is tied to the University’s transition to Aggie
Enterprise and the establishment of a complete, self-balancing chart of accounts, which should reduce the
need for adjustments and result in a more streamlined process for developing the year-end trial balance and
accompanying financial reports. The go-live date for Aggie Enterprise has been delayed to January 2, 2024,
which will delay Unitrans’ ability to resolve these outstanding issues.
Person Responsible: Teri Sheets, Assistant General Manager-Administration; tmsheets@ucdavis.edu
Timeframe for Completion: Because the University’s system conversion is not expected to go live until
January 2024, we expect to resolve this and prior-year findings in the fiscal year starting July 1, 2024.