Finding Text
Reporting – Preparation of the Schedule of Expenditures of Federal Awards
Federal Assistance Listing Numbers: 10.558, 93.600 and 93.676
Name of Program or Cluster: Child Nutrition Cluster – Child and Adult Care Food Program, Head Start Cluster – Head Start, Unaccompanied Alien Children Program
Federal Agencies: Department of Agriculture, Department of Health and Human Services
Pass-through Entities: New York State Department of Health (10.558), New York City Department of Education (93.600) Lutheran Immigration and Refugee Services (93.676)
Compliance Requirement: Reporting
Criteria
Per Uniform Guidance, section 200.508, auditee responsibilities include preparing appropriate financial statements, including the Schedule of Expenditures of Federal awards (“SEFA”) in accordance with §200.510 financial statements.
Condition
The Schedule Expenditures of Federal Awards (“SEFA”) submitted by the Organization needed significant corrections.
Cause
Internal controls over the preparation of the SEFA regarding federal grant and contract identification, sub-recipient identification, and internal review and approval, were not implemented and operating as necessary.
Effect
The failure to submit an appropriate SEFA as part of the auditee responsibilities could result in the SEFA being materially misstated or misclassified.
Questioned Costs
None
Recommendation
We recommend that the Organization review their internal controls over preparation of the SEFA.