Finding Text
Criteria: Management is responsible for proper classification of grants
received to accurately prepare the Schedule of Expenditures of Federal Awards (SEFA).
Condition: Changes to the SEFA were required to properly state federal funds received from pass
through grants and spent during the fiscal year ended June 30, 2023.
Cause: Executive management failed to prepare the SEFA accurately for the fiscal year ended June
30, 2023.
Effect: Failure to maintain records of the federal funds flowing from pass through grants could
result in incorrect reporting.
Recommendation: We recommend that the Organization inquires from the granting agency about federal
funding as an internal control step every time each grant is received to ensure that the SEFA is
prepared correctly every fiscal year.
Views of Responsible Officials: Management agrees with the audit
findings.