Finding Text
CRITERIA/SPECIFIC REQUIREMENT:
The Code of Federal Regulations (Code) (2 CFR §200.510 (b)), establishes criteria and requirements related to the preparation of the schedule of expenditures of federal awards.
The Code (2 CFR §200.303 (a)) requires Regional Office of Education No. 39 to establish and maintain effective internal control over the federal award to provide reasonable assurance the Regional Office is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls should include procedures over preparation of the schedule of expenditures of federal awards.
CONDITION:
The Regional Office of Education No. 39 did not have sufficient internal controls over the preparation of the Schedule of Expenditures of Federal Awards (SEFA) to ensure all federal expenditures during the fiscal year were reported and information in the SEFA was accurately reported.
CONTEXT:
During our review of the SEFA, we noted the following:
The Education Stabilization Fund was not specifically categorized in the SEFA and the
total federal awards expended for the program was not reported.
Program title descriptions were incorrect.
Assistance listing number was incorrectly listed.
Pass-through subrecipient amount was not indicated.
EFFECT:
Failure to report an accurate SEFA affects the required audit coverage to meet federal requirements and can delay an audit beyond the reporting deadline.
CAUSE:
Management indicated the errors on the SEFA was due to oversight.
RECOMMENDATION:
The Regional Office of Education No. 39 should establish and implement internal controls over preparation of the SEFA to ensure accurate reporting.
MANAGEMENT’S RESPONSE:
The Regional Office of Education No. 39 agrees with the audit findings and will work with
contracted accounting firm to ensure that the schedule of expenditures of federal awards are
accurately reported as required.