Finding Text
Finding 2022-002: Identification of Federal Funds for Purposes of Assembling the
Schedule of Expenditures of Federal Awards (SEFA)
All Federal programs included in the Schedule of Expenditures of Federal Awards
Compliance Findings: Other (P)
Criteria: Per 2 CFR 200.510(b) Schedule of expenditures of Federal awards, “the auditee
must prepare a schedule of expenditures of Federal awards 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 200.502, Basis for determining Federal awards
expended. While the auditor is able to assist with SEFA preparation, management remains
responsible for identifying all federal expenditures to enable the preparation of a complete and
accurate SEFA.
Condition: Management was unable to provide a complete listing of federal expenditures at
the start of audit fieldwork.
Cause: Internal controls were not in place to ensure all relevant information was captured and
reported in SEFA preparation.
Effect: By not having proper controls over SEFA preparation at the beginning of the audit,
there is a risk that the SEFA will not reflect all the federal awards subject to the Uniform
Guidance, which could lead to an incorrect major program determination and a substandard
single audit.
Questioned Costs: $0
Identification of Repeat Finding: Not a repeat finding.
Recommendation: We recommend that Range Mental Health Center, Inc. and Subsidiary
implement internal controls to ensure there is an adequate communication and review process
in place to capture all federal awards expended at the correct amounts in accordance with the
criteria above.
Views of Responsible Officials and Corrective Action Plan: Management agrees with this
finding and is in the process of developing internal controls to ensure timely and appropriate
actions are made on the deficiency noted. Additional details can be found in the
Organization’s Corrective Action Plan.