Finding Text
Preparation of Schedule of Expenditures of Federal Awards ("SEFA")
Criteria
The SEFA is required to be prepared in accordance with Uniform Guidance to reflect expenditures of federal awards.
Condition
The original SEFA presented to the audit firm was understated by $100,000 due to one missing program.
Context
The SEFA did not accurately reflect the proper amount of federal expenditures.
Effect
The SEFA did not properly reflect the amount and funding source of the federal awards as required by Uniform Guidance and had the potential to have an incorrect major program selected.
Cause
The Organization's internal control over the preparation of the SEFA was not effective to verify that all federal programs are listed.
Auditor's Recommendations
We recommend implementation of procedures to provide oversight that ensures the completion of an accurate and complete SEFA.