Description of Finding: The Schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit.
Statement of Concurrence or Nonconcurrence:
The audit was not submitted on time.
Corrective Action:
Staff turnover contributed to the need for multiple adjustments after the fact. Of the five positions within the department five were vacated within a 12 month period. During and leading up to the closing of the FY 22/23 year, a complete turnover of staff occurred including all senior staff within the Finance Department. There were a number of journal entries that required a depth of historical knowledge to perform properly as many of the capital projects associated with the SEFA are multi year. Budgeted large transfers and project transfers complicated the process of closing projects and funds.
To reduce the need for as many audit adjustments, a new process was implemented during the FY 23/24. Payroll and invoices are being direct billed to the funds and projects to reduce the need for unnecessary transfers. This step will simplify the structure of funds. This standard accounting practice will enable staff to reconcile, evaluate, and accrue much more timely and accurately.
Name of Contact Person: Aimee Beleu, Finance Director, (530) 872-6291, abeleu@townofparadise.com
Projected Completion Date: 4/1/24