Finding 390778 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-04-01

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards (SEFA) does not match the Organization’s financial records due to reliance on external data sources.
  • Impacted Requirements: This discrepancy affects the accuracy and completeness of the SEFA, which is critical for compliance with federal reporting standards.
  • Recommended Follow-Up: Management should develop a reconciliation process between external data and the accounting system to ensure accurate reporting of federal expenditures on the SEFA.

Finding Text

Preparation of the Schedule of Expenditures of Federal Awards. Federal Program Information: Child and Adult Care Food Program (Federal Assistance Listing #10.558) and the Twenty-First Century Community Centers Program (Federal Assistance Listing #84.287C) Condition and Criteria: The Schedule of Expenditures of Federal Awards (“SEFA”) is prepared using source information other than the financial reports generated by the accounting system. As a result, the Organization’s internally prepared SEFA did not agree to the Organization’s financial records. Prior Year Audit Finding: 2022-002 Cause and Effect: The SEFA was prepared based on information obtained outside of the accounting system due to the complexity of tracking the various expenditures by funding source within the accounting system. This could result in an incomplete or inaccurate SEFA. Context: This represents a systemic problem. Questioned Costs: None. Recommendation: Total expenditures reported on the SEFA are compiled through reviewing draw down reports and estimated spending amounts. These amounts do not always tie out to financial information in the accounting system due to the complexity of tracking the federal grant expenditures by funding source. Therefore, we recommend management create a reconciliation of the financial information maintained obtained outside of the accounting system and the accounting system in order to ensure all federal expenditures are included and reported accurately on the SEFA. Management’s Response: Management has determined it is not practical to enter all expenditures into the accounting software by fund source, and tracks the data outside of the accounting software. Management will continue to search for alternatives for entry into the accounting software which are financially feasible.

Categories

Reporting Cash Management

Other Findings in this Audit

  • 390776 2023-001
    Significant Deficiency Repeat
  • 390777 2023-001
    Significant Deficiency Repeat
  • 390779 2023-001
    Significant Deficiency Repeat
  • 967218 2023-001
    Significant Deficiency Repeat
  • 967219 2023-001
    Significant Deficiency Repeat
  • 967220 2023-001
    Significant Deficiency Repeat
  • 967221 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $533,594
84.287C 21st Century Community Learning Centers $450,548
84.425U Education Stabilization Fund - Esser Arp $250,000
16.726 Juvenile Mentoring Program $138,500
21.027 Coronavirus State and Local Fiscal Recovery Funds $104,297
84.287C 21st Century Community Learning Centers - Summer $34,776