Finding Text
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.