Views Of Responsible Officials and Corrective Action Plan
Response:
Youth Shelters and Family Services, Inc. (YSFS) acknowledges the finding and agrees that improvements are needed in preparing the Schedule of Expenditures of Federal Awards (SEFA). YSFS is committed to ensuring compliance with 2 CFR 200.510(b) and will take the necessary steps to enhance the accuracy and timeliness of SEFA preparation.
Corrective Action Plan:
To address the identified deficiencies, YSFS will develop processes to aid in the implementation of the following corrective actions:
1. Establish a Formal SEFA Preparation Process:
• Develop and implement a standardized SEFA preparation procedure, including all required elements (a federal portion of expenditures, grant name, grantor name, Assistance Listing number, and pass-through entity information).
• Assign clear responsibilities for SEFA preparation and review to designated finance personnel.
• SEFA will be prepared quarterly, rather than waiting until year-end, to allow for ongoing review and corrections.
2. Improve Internal Controls Over SEFA Preparation:
• Implement a reconciliation process to compare SEFA expenditures with the federal revenues and expenditures.
• Review and update QuickBooks job categories regularly to ensure proper coding of federal expenditures.
• Establish a dual-review process where a second finance team member or external consultant reviews SEFA for accuracy before submission.
3. Training and Capacity Building:
• Provide training to finance staff on Uniform Guidance requirements for SEFA preparation.
• Ensure staff are familiar with federal grant compliance requirements and reporting obligations.
4. Enhance Monitoring and Accountability:
• Set internal deadlines for SEFA preparation to prevent delays.
• Conduct periodic internal reviews of federal grant expenditures to ensure compliance and accuracy.
• Management oversight of SEFA preparation is required to ensure completeness and correctness.
Finding resolved timeline: YSFS aims to develop a process to implement these corrective actions and have an accurate, timely SEFA process by June 30, 2025, to ensure compliance with federal regulations in the upcoming fiscal year.
Designation of employee position responsible for meeting this deadline: Heather Hoffman, Julie Weigand, and an external consultant will oversee and ensure this corrective action plan's development and successful implementation.