Finding Text
2023-004 – Schedule of Expenditures of Federal Awards
Federal program information:
Funding Agency: All major program funding agencies
Title: All major programs
Assistance Listing Number: All major program ALN’s
Award Periods: All major program award periods
Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502.
Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Lastly, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances.
Context: N/A
Questioned Costs: None.
Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA.
Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis.
Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information.
Management Response: The Department will work with their accounting consultant to properly prepare the SEFA. The Department will verify all Assistance Listing Numbers and make all necessary adjustments prior to submitting the SEFA to the auditors.