Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 21.027 U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Funds
Federal Award Identification Number and Year - YDYNCVFA9NH4
Pass through Entity - City of Raleigh, North Carolina
Finding Type - Material weakness
Repeat Finding - No
Criteria - Per 2 CFR 200.508(b), an auditee must prepare appropriate financial statements, including the schedule of expenditures of federal awards, in accordance with 200.510 financial statements. Per 2 CFR 200.510(b), the auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 200.502 basis for determining federal awards expended.
Condition - Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate.
Questioned Costs - N/A
Identification of How Questioned Costs Were Computed - N/A
Context - WakeMed did not initially include the funds received through the U.S. Department of the Treasury American Rescue Plan Act of 2021, Coronavirus State and Local Fiscal Recovery Funds on the SEFA.
Cause and Effect - WakeMed did not have a process in place to identify all potential sources of federal funding received during the year, resulting in the SEFA being incomplete for the year ended September 30, 2022. Upon discovery of the error, WakeMed prepared a SEFA that included the U.S. Department of the Treasury American Rescue Plan Act of 2021, Coronavirus State and Local Fiscal Recovery Funds. This lack of controls resulted in the reissuance of the 2022 single audit.
Recommendation - Management should implement controls to ensure all federal funding received is properly identified as such and included on the SEFA.
Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding as reported. The federal funding was not received until fiscal year 2023 while some expenditures were incurred in fiscal year 2022. The timing of events contributed to the oversight on the 2022 SEFA. WakeMed has reeducated staff on the preparation of the SEFA in order to prevent this error from reoccurring.