Finding Text
Federal Program
Special Education Cluster - Passed through the Berks County Intermediate Unit ALNs 84.027 and 84.173
Education Stabilization Fund - Passed through the Pennsylvania Department of Education ALN 84.425
Criteria
Per the Uniform Guidance 2 CFR 200.510, the auditee is required to prepare a schedule of expenditures of federal awards (SEFA).
Condition
The District prepared a SEFA and provided information relating to the federal programs including grant agreements and other supporting documentation. However, the SEFA prepared by the auditee required material adjustments as a result of audit procedures.
Cause
The District had turnover in the assistant business manager and other business office positions during and subsequent to year end. As a result of the turnover, certain account reconciliations were not performed prior to the audit, which included amounts reported on the SEFA.
Effect
Amounts reported on the SEFA provided by the auditee were not accurate. The SEFA was subsequently updated through audit procedures, including inquiry and review of grant documentation of awards received and amounts expended.
Questioned Costs
None.
Context
A SEFA was prepared by management; however, several adjustments were required in order for the schedule to accurately reflect the current year activity.
Repeat Finding
No.
Recommendation
In order to meet Uniform Guidance requirements, the District should prepare the SEFA from the grant award documentation and any other relevant information including the assistance listing numbers, grant award amounts, grant amounts received, grant amounts expended, and grant revenue recorded. The amounts reported in the SEFA should reconcile to the general ledger.
Management Response
See corrective action plan included in this report package.