Finding Text
2023-002 - Internal Controls Over Compliance and Compliance with Reporting - Preparation of the Schedule of Expenditures of Federal Awards
Information on the Major Federal Program -
Federal Agency: Department of Interior
Program Name: National Park Service Second Century Endowment
Assistance Listing Number: 15.U01
Award Number: H.R. 4680/P.L. 114-289
Award Period: October 1, 2022 to September 30, 2023
Criteria - The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: “The auditee must also 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 Section 200.502 Basis for determining Federal awards expended.” The Schedule must provide total Federal awards expended for each individual Federal program.
Condition – During the testing of the schedule of expenditures of federal awards (SEFA) for the National Park Service Second Century Endowment for the year-end September 30, 2023, we identified transactions totaling $1,848,493 which were improperly included in the SEFA. These expenditures were not incurred during the fiscal year and should not have been included in the SEFA.
Cause - The internal controls established for the review and reconciliation of the SEFA to the underlying accounting records were not consistently followed to ensure accurate reporting of expenditures to the SEFA.
Effect or Potential Effect - Failure to properly review and support expenditures reported in the SEFA can result in inaccurate reporting and non-compliance with laws and regulations.
Questioned Costs - None.
Context - We reviewed the SEFA and found the exception as noted in the condition.
Repeat Finding - This is not a repeat finding.
Recommendation - Internal controls should be designed to prevent, detect and correct errors and/or omissions in a timely manner. Without adequate controls, the Foundation cannot provide reasonable assurance that the SEFA is fairly presented. See management’s response for further details.
Views of Responsible Officials - Management agrees with this finding and recommendation. The Foundation’s management agrees with the finding and recommendation. The planned corrective actions are presented in the Foundation’s management’s corrective action plan attached as Appendix C.