Finding Text
Finding 2024-004: Schedule of Expenditures of Federal Awards (SEFA) Reporting
Program: COVID-19: Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027)
Federal agency: U.S. Department of the Treasury
Federal Award Year: Year ended June 30, 2024
Type of finding: Material weakness
Criteria: 2 CFR 200.510(b) requires that “The auditee must prepare a schedule of expenditures of Federal awards (the “schedule”) for the period covered by the auditee’s financial statements, which must include the total Federal awards expended as determined in accordance with section 200.502.
Condition: While performing our audit procedures, we noted that CAFB included a $5 million grant from Fairfax County on their SEFA even though CABF is considered a beneficiary related to this grant.
Cause: While the Organization recognized they were considered a beneficiary, they believed it was more conservative to include the grant on their SEFA.
Effect: The SEFA was overstated by $5 million.
Context: An error in the amount of approximately $5 million was identified on the SEFA with total federal expenditures of approximately $46 million.
Questioned costs: None
Repeat finding: No
Recommendation: We recommend that CAFB strengthen its controls over the preparation of the SEFA and consult directly with grantors if there are questions related to whether a grant should be included on the SEFA.
Views of responsible officials: CAFB does not agree with the finding as CAFB performed its own research suggesting exclusion of the aforementioned award and included it on the SEFA after consultation with RSM.
RSM Response: RSM cannot be part of CAFB’s internal control structure and suggests in the future they consult directly with grantors if there are questions related to whether a grant should be included on the SEFA.