Finding Text
--Type of Finding: Material weakness in internal control over compliance
--Federal Program: All federal programs
--Questioned Costs: None
--Criteria: Title 2, CFR Part 200, Subpart F, § 200.510(b) requires the 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 § 200.502.
--Condition: While performing audit procedures on the schedule of expenditures of federal awards (SEFA), we identified federal awards that the organization did not identify for inclusion in the SEFA. The SEFA was materially misstated due to the exclusion of two federal awards with expenditures totaling $169,960 during the year, and discrepancies in relevant information expenditure amounts listed for certain other federal awards totaling $92,083.
--Cause: There is a deficiency in the design and implementation of internal controls in place to identify federal awards and expenditures for inclusion on the SEFA, and to properly review the SEFA.
--Effect: Failure to accurately identify federal awards could cause the SEFA to be materially misstated and the performance of an insufficient major federal award programs audit.
--Recommendation: To ensure an accurate and complete presentation of the SEFA, we recommend management develop a system whereby all federal assistance is identified at both the program level and in the accounting department. We recommend identifying whether grants or other forms of assistance include federal funding at the time grants are signed or received. We further recommend that one individual be made responsible for tracking this information and that the information be provided to and reviewed by an individual in the accounting department on an ongoing basis.
--Views of Responsible Officials: Management agrees with auditor’s finding. See attached corrective action plan.