Finding 520779 (2023-003)

Federal Awarding Agency: U.S. Department of Health and Human Services Pass-Through Entity: Sacramento County Category of Finding: Allowable Cost/Cost Principles Federal-Pass through Grantor: 7206000-23-136 AL No: 93.778 Finding: The audit identified that the auditee did not provide an accurate and complete Schedule of Expenditures of Federal Awards (SEFA) directly to the auditor, as required by OMB Circular A-133. Cause: The auditee did not have adequate controls in place to ensure that the SEFA was prepared and provided to the auditor accurately and in a timely manner. There was a lack of communication and coordination among the different departments responsible for tracking and reporting federal expenditures. Effect: The failure to provide an accurate and complete SEFA directly to the auditor could result in the auditor being unable to properly identify the federal programs subject to audit, potentially leading to audit findings or compliance issues. Additionally, this could result in delays in the audit process and additional time and effort required to complete the audit. Criteria: The auditee should comply with the requirements stated in OMB Circular A-133, which mandates the accurate and timely preparation and direct submission of the SEFA to the auditor. Questioned costs – Unknown Repeat finding - Yes Recommendation: The auditee should establish and implement a formal process for preparing and providing the SEFA directly to the auditor, in accordance with the requirements of OMB Circular A-133. This should include clear roles and responsibilities for each department involved in the process, as well as clear deadlines for recording and reconciling federal expenditures and preparing the SEFA. The auditee should also ensure that all required documentation is readily available and accessible to the staff members responsible for preparing the SEFA, and that any errors or discrepancies are promptly identified and corrected. Finally, the auditee should consider implementing automated tools and systems to streamline the SEFA preparation process and improve accuracy and efficiency, and should provide training to staff members responsible for preparing and providing the SEFA to ensure that they are aware of the requirements and procedures for complying with OMB Circular A-133.