Finding Text
Section III - Federal Awards Findings and Questioned Costs
Finding 2023-002 Inaccurate Schedule of Expenditures of Federal Awards ("SEFA") (Material
Weakness)
Assistance Listing Number 14.157 - Supportive Housing for the Elderly (Section 202)
Compliance requirements: Reporting
Criteria:
In accordance with 2 CFR part 200, Subpart F, the Organization is required to prepare a SEFA for
the period covered by the auditee's consolidated and combined financial statements. At a minimum,
the schedule shall:
List all individual Federal programs by Federal agency.
Include the name of the pass-through entity and the identifying number assigned by the
passthrough entity for all Federal funds expended as a subrecipient.
Provide the total Federal awards expended for each individual Federal program and the
Assistance Listing Number or other identifying number when the Assistance Listing Number
information is not available.
Identify to the extent practical, the total amount provided to subrecipients from each Federal
program for Federal awards received as a pass-through entity.
The Organization's processes over identifying federally funded grants and confirming federal
funds did not include Federal loans, which resulted in delays in preparing a complete SEFA.
Condition:
During our testing, we noted that the Organization did not properly identify federal funding and
applicable reporting requirements.
Cause:
Internal controls over the accurate preparation and completeness of the SEFA were not
operating effectively or in a timely manner.
Effect of potential effect:
Improper SEFA and delays in identifying whether an award is federally funded could result in
errors in accounting, disallowed costs, and noncompliance with Uniform Guidance
requirements.
Identification as a repeat finding:
No.
Questioned costs:
$0.
Context:
Management did not provide a timely and complete SEFA as supporting documentation for the
reporting requirements.
Recommendation:
We recommend that the Organization strengthen its policies and procedures for the
identification of Federal awards and ensure preparation of a complete and accurate SEFA is
performed in a timely manner and in accordance with the requirements of Office of Management
and Budget.
Views of responsible officials:
Management is in the process of implementing compliance procedures that include obtaining
confirmation from the federal agencies to ensure the complete and accurate preparation and
presentation of the SEFA.