Finding 540982 (2024-008)

Finding 2023-008 Schedule of Expenditures of Federal Awards. Type of Finding: Internal Control Deficiency and Compliance Finding. Condition: The City did not prepare a complete and accurate Schedule of Expenditures of Federal Awards and State Transportation Assistance ("SEFA"). Criteria: The Schedule of Expenditures of Federal Awards and State Transportation Assistance is required to be prepared by the Auditee under federal and state regulations. Cause: Federal and state expenditures are not tracked by funding source. Reimbursements from funding sources are not always allocated accurately to federal and state revenue accounts when received. Effect: Total expenditures of federal awards and state transportation assistance reported on the SEFA as required for the single audit was not accurate, requiring additional research and audit adjustments. Repeat Finding: This is a repeat of finding 2023-007. Recommendation: RBT recommends that the City obtain a clearer understanding of the SEFA and the preparation process such that the annual compilation of data is complete and accurate. Auditee's Response: See corrective action plan.