Finding Text
Finding: 2024-001: Improper Preparation of the Schedule of Expenditures of Federal Awards
Information on the Federal Program: Assistance Listing Numbers 21.027 and 21.019
Criteria or Specific Requirement: According to 2 CFR 200.303, non-Federal entities should
establish and maintain effective internal controls over compliance and financial management and
reporting. These internal controls should be in compliance with guidance in the “Internal Control
Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). These controls should include timely reconciliation of Federal grant
expenditures to ensure that the Schedule of Expenditures of Federal Awards (SEFA) is accurate and
complete.
Condition: During our audit procedures over the SEFA, we noticed that one Federal award (ALN
21.027) was not included on the SEFA when it should have been included. In addition, one award
was improperly labeled as being a part of ALN 21.027, when it was in fact determined to be included
in ALN 21.019. We also discovered another award was included in the SEFA, when it was
determined that the award was not Federally funded and should have been removed from the SEFA.
Cause: The identified condition was attributable to lack of sufficient internal control and review
procedures in place over the SEFA. The award not included on the SEFA when it should have been
was tracked within the accounting system as a Federal award, but was not properly recorded on the
SEFA. The award tracked with the incorrect ALN and the award that was recorded on the SEFA
when it should have been removed were both caused by error.
Effect or Potential Effect: Significant time was required to receive an appropriately completed and
accurate SEFA from management during the audit. Failure to provide an accurate SEFA during the
audit could result in an incorrect major program determination and incomplete testing over the SEFA.
Questioned Costs: N/A - Management ultimately corrected the errors identified during preparation
of the SEFA.
Context: We test the accuracy of the SEFA information by tracing to the grant agreements.
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: We recommend that management design and implement a procedure to ensure
that the SEFA, once prepared by the accounting team, is reviewed and approved by the Director of
Operations to ensure that all Federal awards are properly included and tracked on the SEFA.