Finding Text
Finding #2024-004 – Material Weakness and Other Non-Compliance – Reporting. Applicable federal programs: All Programs. Criteria: Schedule of Expenditures of Federal Awards – In accordance with the Uniform Guidance §200.508 and §200.510, management is to prepare a schedule of expenditures of federal wards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended. Condition and context: As a result of turnover in the accounting department, NYOS did not provide a SEFA that reconciled to the expenses, reported in the general ledger and had not reconciled expenses to revenue reported for federal grants to identify differences. As a result, a federal grant with expenditures of approximately $168,000 was omitted from the SEFA. Cause: NYOS failed to have procedures in place to properly prepare the SEFA and to reconcile expenses to revenue reported for federal grants. Effect: The SEFA provided was not complete resulting in adjustments. Recommendation: Develop policies and procedures to identify and reflect all federal programs and required information on the SEFA and to reconcile expenses to revenue. View of responsible officials and planned correction actions: Management agrees with the finding. See Corrective Action Plan.