Finding Text
2022-002 - Internal Control over Schedule of Expenditures of Federal Awards (SEFA) Preparation
(SD, NC)
Criteria: Pursuant to the guidance found in the Office of Management and Budget (OMB) 2 CFR Part
200, Appendix XI, the City has responsibility to:
Identify, in its accounts, all Federal awards received and expended and the Federal programs
under which they were received. Federal program and award identification shall include, as
applicable, the assistance listing title and number, award number and year, name of the Federal
agency, and name of the pass-through entity.
Prepare appropriate financial statements, including the schedule of expenditures of Federal
awards (SEFA).
Condition: One of the programs in the SEFA had an incorrect federal grantor, program name, and
assistance listing number.
Cause: Lack of adequate attention to detail of grant agreements.
Effect or Potential Effect: Failure to report expenditures by its correct federal grantor, program name
and assistance listing number exposes the City to be flagged by the awarding Federal agency, for grant
sanctions and the rectification of its reported records to the Federal Clearing House.
Questioned Cost: None
Context: The draft SEFA prepared by the City for audit reported that the City expended Coronavirus
Emergency Supplemental Fund (assistance listing number 16.034) from the US Department of Justice.
Upon review of the grant award, the grant actually came from the US Department of Housing and Urban
Development for the Community Development Block Grant program (assistance listing number 14.218)
Statistical Sampling Validity: Not applicable. Sampling was not performed in relation to this finding.
Repeat of a Prior-Year Finding: 2019-012, 2021-004
Recommendation: We recommend the City implement grant award tracking procedures, which provide
information on which expenditures were drawn down from which grant award ID for an accurate reporting
of the breakdown of expenditures. We recommend the City be cognizant and obtain a thorough
understanding of current SEFA reporting guidelines and requirements under the Uniform Guidance.
Management Response and Corrective Action Plan
City's Response: The City concurs with the finding.
Corrective Action Plan: Finance staff will be trained to monitor the different grants that are
received and appropriately record the data. A third-party consultant has established a
reconciliation and tracking system for grants.
Planned Implementation Date: Began in Q4 FY 2023 and continues in FY 2024
Responsible Person: Finance Staff