Finding Text
Schedule of Expenditures of Federal Awards
Criteria: CFR Part 200.508 Audit Responsibilities state that the auditee must prepare the Schedule of Expenditures of Federal Awards, which must list individual federal awards by federal agency, including the total federal awards expended, name of pass-through entity, assistance listing number, and total amount provided to subrecipients. The information contained in the Schedule of Expenditures of Federal Awards should be derived from and relate directly to the underlying accounting and other records used to prepare the
financial statements.
Condition: The Schedule of Expenditures of Federal Awards was prepared by the auditor based on federal award contracts provided by the auditee. Also, during 2022 an additional federal award was received that management was not aware of.
Cause: Management has limited knowledge on requirements of a Single Audit. Management relied on auditors to prepare the Schedule of Expenditures of Federal Awards.
Effect: Potential understatement or overstatement of expenditures could exist in the Schedule of Expenditures of Federal Awards and not be detected or corrected.
Questioned Costs: None noted.
Recommendation: Establish procedures to prepare the annual Schedule of Expenditures of Federal Awards and reconcile amounts reported to the Organization's general ledger. The Organization should provide appropriate training to staff who work with government funding.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. Management has hired a compliance administrator to track all grants, including federal, state and county. Management and Butler CPA firm will ensure training to establish procedures and the preparation of the Schedule of Expenditures of Federal Awards.