Finding Text
Finding 2023-III-001 – Schedule of Expenditures of Federal Awards (SEFA)
Type of Finding – Material Weakness
Criteria: The City is required to properly account for all federal spending and to prepare an accurate and complete SEFA for each fiscal year.
Condition/Cause: The Director of Finance, who is responsible for preparing the SEFA, did not prepare and provide a SEFA for audit for FY23. During our audit, we were able to assist the Director of Finance in producing the SEFA after numerous journal entries to the grant fund.
Recommendation: We recommend that the City reviews their grant management policies and procedures. A reconciliation of grant expenses should be completed monthly. In addition, complete and accurate files should be maintained for each grant so that an accurate and complete SEFA can be prepared at year-end that ties to the general ledger.
Response: City staff will update grant management policies and procedures to include monthly reconciliations of grant expenses and will maintain complete grant files so that an accurate and complete SEFA that ties to the general ledger can be prepared annually for audit and required reporting.