Finding Text
2022-002 Schedule of Expenditures of Federal Awards (SEFA) Condition: Significant Deficiency - During the preparation of the SEFA, various funds were included that Southeast Mental Health was only a contractor on and not awarded the funds as a pass-through entity. Criteria: The Uniform Guidance requires that funding that is to be listed on the SEFA are to be directly awarded by the federal government or a pass-through entity and not funds that are received due to contract work. Cause: During our review of the award agreements provided to support the SEFA we noted various agreements that were contracts and not awarding agreements. Effect: Funding could be overstated on the SEFA and could affect the calculations required for Single Audit. Recommendation: Southeast Health Group should only include funding awarded to the Organization for the continuation of their programs on the SEFA.