Finding Text
Federal Program Information: Education Stabilization Fund (ALN 84.425U) Criteria: 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.
Condition: During our audit of the financial statements for the fiscal year ending December 31, 2023, we
identified that the SEFA was not prepared in accordance with the requirements set forth by the Uniform
Guidance (2 CFR Part 200) and was incomplete.
Cause: Insufficient internal control and administrative oversight.
Effect or Potential Effect: As a result of the incorrect preparation, the SEFA did not accurately reflect
the Federal awards expended during the fiscal year. This could potentially lead to non-compliance with
Federal requirements and affect the accuracy of the financial statements.
Recommendation: We recommend that the entity implement the following corrective actions:
1. Provide training to the staff responsible for preparing the SEFA to ensure they understand the
requirements of the Uniform Guidance.
2. Establish a review process to verify the accuracy and completeness of the SEFA before
submission.
3. Utilize a checklist or other tools to ensure all required information is included in the SEFA.
Views of Responsible Officials: The Alliance will implement more stringent internal controls and
administrative oversight with respect to preparation and review of the SEFA.