Finding Text
Preparation of Schedule of Expenditures of Federal Awards ("SEFA")
Criteria
The SEFA is required to be prepared in accordance with the Uniform Guidance to reflect expenditures of federal awards.
Condition
The original SEFA presented to the audit firm was overstated by $303,678 due to several errors.
Context
The SEFA did not accurately reflect the proper amount of federal expenditures.
Effect
The SEFA did not properly reflect the amount of 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 the proper amount of federal expenditures.
Auditor's Recommendations
We recommend implementation of procedures to provide oversight that ensures the completion of an accurate SEFA.