Finding 403814 (2023-005)

Finding No. 2023-005: Internal Control over Preparation of Schedule of Expenditures of Federal Awards (“SEFA”) – Significant Deficiency in Internal Control over Compliance Criteria Uniform Guidance prescribes the required Schedule of Expenditures of Federal Awards (SEFA) contents and delineates how or what is deemed to be expenditures for purposes of completing the SEFA. Context During our testing, when comparing the amount of the federal expenditures recorded to the general ledger, we noted a difference in the overall federal expenditures and the related federal revenue recorded. Cause There was a breakdown in internal controls over reconciling the supporting schedule used as part of the audit testing, to amounts recorded to the SEFA. This was due to expenditures recognized in the prior years that were not included on the SEFA, but were claimed on the requests for reimbursement from the federal agency. Effect A difference noted between expenditures and revenue recognized could lead to awards being over or under drawn and not in compliance with respective awards. Questioned Costs None Recommendation To ensure adequate internal controls over the preparation of the SEFA, we recommend that the Organization enhance internal controls over the preparation of the SEFA to ensure that it is prepared by one individual with another individual reviewing the underlying support to ensure completeness and accuracy. Views of Responsible Officials See Corrective Action Plan