Finding 517189 (2023-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-12-30

AI Summary

  • Core Issue: The SEFA for 2023 was incomplete, failing to include all federal awards received and spent.
  • Impacted Requirements: Compliance with federal reporting standards is at risk due to inaccuracies in the SEFA.
  • Recommended Follow-Up: The Organization should enhance its SEFA preparation process, ensuring reconciliation with the general ledger and vouchers.

Finding Text

Condition: The SEFA submitted for the year ended December 31, 2023 was found to be incomplete. Criteria: Organizations are required to prepare a SEFA that includes all federal awards received and expended during the fiscal year. The SEFA must be complete and accurate to ensure compliance with federal reporting requirements. Cause: The inaccurate reporting of these federal awards appears to be due to lack of communication and oversight in data collection. Effect: The incomplete SEFA may lead to noncompliance with federal regulations, potentially resulting in loss of funding. Recommendation: The Organization should review its procedures for putting together the SEFA and ensure that there is a reconciliation with the general ledger and vouchers to ensure the SEFA is complete. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.

Corrective Action Plan

Management will review its financial and grant management policies to ensure that all grants are appropriately reviewed to determine if there is a federal funding component and if so, that all necessary information is obtained. Additionally, management will seek confirmation from its funders regarding federal grant spending on an annual basis.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $270,000
21.019 Coronavirus Relief Fund $206,301