Finding Text
Criteria and Condition: Energy Outreach is responsible for preparing a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Energy Outreach incorrectly prepared the SEFA, omitting activity of two federal awards. Energy Outreach was able to provide a complete and accurate SEFA once management was informed of the omitted programs. Context: Energy Outreach received funding from the U.S. Department of the Treasury as support for utility and emergency rental assistance. The SEFA from management omitted this activity, resulting in the SEFA underreporting federal activity by $6,125,613. Cause: As a result of the financial statement audit, the missing activity was identified. The SEFA provided by management was incomplete due to a lack of communication between the program and accounting departments. Effect: The SEFA is considered inaccurate without including all federal funding received which could result in improperly selecting major programs to be tested. Recommendation: We recommend Energy Outreach?s management obtain appropriate training on the requirements for reporting federal programs on the SEFA.