Finding Text
Program Information: Texas Statewide Youth Services Network Project (“SYSN”)
(ALN #93.590)
Criteria or Specific Requirement (Including Statutory, Regulatory
or Other Citation): L. Reporting- The auditee must prepare a schedule of expenditures of Federal awards (the “SEFA”) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502 Basis for determining Federal awards expended. At a minimum, the schedule must: (1) List individual Federal programs by Federal agency. For a cluster of programs, provide the cluster name, list individual Federal programs within the cluster of programs, and provide the applicable Federal agency name. For Research and Development (“R&D”), total Federal awards expended must be shown either by individual Federal award or by Federal agency and major subdivision within the Federal agency. (2) For Federal awards received as a subrecipient, the name of the passthrough entity and identifying number assigned by the pass-through entity must be included. (3) Provide total Federal awards expended for each individual Federal program and the Assistance Listing number or other identifying number when the Assistance Listing information is not available. For a cluster of programs also provide the total for the cluster. (4) Include the total amount provided to subrecipients from each Federal program. (5) For loan or loan guarantee programs described in 2 CFR 200.502(b), identify in the notes to the schedule the balances outstanding at the end of the audit period. This is in addition to including the total Federal awards expended for loan or loan guarantee programs in the schedule. (6) Include notes that describe that significant accounting policies used in preparing the schedule and note whether or not the auditee elected to use the 10% de minimis cost rate as covered in 2 CFR 200.414.
Condition: The SEFA, as prepared by management, did not originally bifurcate grant expenditures between state and federal funding sources for the SYSN grant.
Cause: The Organization did not properly identify separate state and federal funding sources as stated on the Notice of Award for the grant.
Effect or Potential Effect: The original draft SEFA did not properly present both state and federal programs for the SYSN grant.
Questioned Costs: None.
Context: During the process to prepare the draft SEFA, management did not properly identify separate funding sources for one grant resulting in improper presentation of certain federal expenditures as state expenditures on the draft SEFA.
Identification as a Repeat Finding: No.
Recommendation: We recommend that the Alliance enhance its procedures and internal controls with respect to the preparation and review of the SEFA by comparing programs on the SEFA with corresponding grant agreements and notices of award.
Views of Responsible Officials and Planned Corrective Actions: Review all federal grant contracts to determine if any separate funding sources should be listed for total funds received.