Finding 498309 (2023-002)

Finding 2023-002 Underlying Accounting Records Supporting Schedule of Federal Expenditures (SEFA) Information on the Federal Programs: 45.024 Criteria or Specific Requirement: The SEFA must be supported by underlying accounting records. Condition: We noted that for two grants within the major program, the expenditures reported on the SEFA were not able to be specifically identified within the accounting system. NCTA was tracking the project using the classes in QuickBooks, but the expenses within the class exceed the amount charged on the SEFA because not all of the expenses were Federal. Cause: The classes within the accounting system used to track the two awards included some expenses which are not charged to the Federal Government. Effect or Potential Effect: If the SEFA cannot be tied out to the underlying accounting records, errors on the SEFA could occur and not be discovered in a timely manner. It is also difficult to determine allowability of expenditures when not possible to identify which items are being charged to the government. Questioned Costs: Undetermined Context: NCTA creates detailed invoices for submission to the Federal Government, but it is not possible to identify only the items charged within the general ledger detail. Identification as a Repeat Finding: Not applicable Recommendation: We recommend that NCTA ensure that it is possible to generate a report providing the detail (general ledger) of transactions that are being charged to and reimbursed by the Federal Government for each award.