Finding 43361 (2022-002)

Condition: During our audit, we noted errors related to calculations of federal expenditures on the Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance requires proper reporting of federal expenditures. Cause: Management did not have the information needed to prepare the Schedule of Expenditures of Federal Awards. Effect: As a result, federal expenditures were overstated by $137,301 on the Schedule of Expenditures of Federal Awards. Context: During our audit procedures, we identified one item on the Schedule of Expenditures of Federal Awards that did not include federal expenditures. Recommendation: We recommend that the Organization implement a review process to ensure correct reporting on the Schedule of Expenditures of Federal Awards prior to the audit, including a reconciliation between the Schedule of Expenditures of Federal Awards and the accounting system. We also recommend updating the federal grant tracking spreadsheet to track expenditures by fiscal year. Views of responsible officials: Management agrees with the finding.