Finding Text
FINDING 2023-001
Program Information: Temporary Assistance for Needy Families (ALN #93.558)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting- The auditee must prepare a schedule of
expenditures of Federal awards (the “SEFA”) for the period
covered by the auditee’s financial statements which must
include the total Federal awards expended as determined in
accordance with 2 CFR 200.502 Basis for determining Federal
awards expended. At a minimum, the schedule must: (1) List
individual Federal programs by Federal agency. For a cluster
of programs, provide the cluster name, list individual Federal
programs within the cluster of programs, and provide the
applicable Federal agency name. For Research and
Development (“R&D”), total Federal awards expended must
be shown either by individual Federal award or by Federal
agency and major subdivision within the Federal agency. (2)
For Federal awards received as a subrecipient, the name of
the passthrough entity and identifying number assigned by
the pass-through entity must be included. (3) Provide total
Federal awards expended for each individual Federal program
and the Assistance Listing number or other identifying number
when the Assistance Listing information is not available. For
a cluster of programs also provide the total for the cluster.
(4) Include the total amount provided to subrecipients from
each Federal program. (5) For loan or loan guarantee
programs described in 2 CFR 200.502(b), identify in the notes
to the schedule the balances outstanding at the end of the
audit period. This is in addition to including the total Federal
awards expended for loan or loan guarantee programs in the
schedule. (6) Include notes that describe that significant
accounting policies used in preparing the schedule and note
whether or not the auditee elected to use the 10% de minimis
cost rate as covered in 2 CFR 200.414.
Condition: The SEFA as prepared by management did not originally
include all expenditures for one federal grant.
Cause: The Organization has a process where administrative
expenses and management travel expenses are charged to a
general fund code. A portion of those expenses related to
the TANF program are then reclassed to the TANF fund code. We note some of those administrative and travel
expenses did not get reclassed into the TANF fund code and
as a result, the draft SEFA was not fully complete.
Effect or Potential Effect: The original draft SEFA was incomplete.
Questioned Costs: None.
Context: During the process to compile and prepare the draft SEFA,
certain administrative and travel costs were excluded from
the draft SEFA, which resulted in the SEFA being understated
by approximately $14,000.
Identification as a Repeat Finding: Similar findings noted in the prior year.
Recommendation: We recommend that the Alliance enhance its procedures and
internal controls with respect to general ledger coding of
expenses, preparation and review of the SEFA.
Views of Responsible Officials and
Planned Corrective Actions:
Management will review SEFA for proper inclusion of all
federal grant expenditures, and Alliance Director will ensure
all invoices are properly coded to grants as applicable.