Finding Text
U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services
#2023-011 – Major Federal Award Finding
Nature of Finding: Significant Deficiency in Internal Controls over Compliance
This is a repeat of prior year finding #2022-007.
Criteria/Condition: Per 2 CFR 200.510(b), the auditee must 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. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs.
Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors.
Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA.
Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate.
Views of Responsible Officials and Planned Corrective Actions:
The Organization will implement the following changes in its accounting procedures:
The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.