Finding Text
Federal Grantor: U.S. Department of Housing and Urban Development, U.S. Department of the Treasury
Pass-Through Grantor: Missouri Department of Economic Development
Federal Assistance Listing Number: 14.228, 21.027
Program Title: Community Development Block Grants, Coronavirus State and Local Fiscal Recovery Funds
Pass-through Entity Identifying Number: 2018-LR-02, 2020-PF-CV-08, 18-DP-MIT22, 2020-WD-CV02, 2020-WD-CV04, 2021-WS-01, 18-DP-MIT23
Award Year: 2022 and 2023
Questioned Costs: None
Criteria: 2 CFR 200.510(b) requires auditees to prepare a schedule of expenditures of federal awards (SEFA) which must report total federal awards expended during the audit period. At a minimum, the schedule must include: expenditures by individual federal program, name of the pass-through entity and identifying number for awards not received directly from the federal government, and the total amount provided to subrecipients from each federal program.
Condition: The SEFA reported by the County in the 2023 and 2024 annual budget documents contained errors in amounts of federal expenditures reported.
The SEFA did not include $553,968 and $3,150,004 of federal expenditures under Assistance Listing Number 14.228 Community Development Block Grants in 2022 and 2023, respectively. The 2022 SEFA incorrectly reported $534,919 of Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) expenditures as expenditures under ALN 21.032 Local Assistance and Tribal Consistency Fund.
Cause: The County Clerk indicated that the 2021 SEFA in the 2022 budget document was used as a reference in preparing the 2022 and 2023 SEFA since he was new to the office. The Community Development Block Grants funds were not included on the 2021 SEFA in the 2022 budget document, but the expenditures were reported on the 2021 SEFA in the 2021-2022 audit report.
Effect: The SEFA presented for audit did not accurately reflect the County’s actual expenditures of federal awards for both the years ended December 31, 2023 and 2022.
Recommendation: We recommend that the County implement internal controls to ensure that the SEFA completely and accurately states the expenditures of federal awards of the County each year.