Finding Text
Condition: The Organization's Schedule of Expenditures of Federal Awards (SEFA) inaccurately presented the federal expenditures for the federal awards. The Organization's SEFA was prepared of of September 30, 2023 and not their fiscal year, December 31, 2023. Criteria: Internal controls should be in place to provide reasonable assurance that the SEFA is prepared in accordance with the Uniform Guidance. The Uniform Guidance, at 2 CFR section 200.508(b), requires the Organization to prepare appropriate financial statements, including the SEFA. Cause: A reconciliation to the related expenditures from federal awards was not performed and would have identified the noted misstatement of the SEFA. Effect: Lack of effective controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected in a timely manner. Recommendation: The Organization should have effective internal controls in place to ensure that the SEFA is accurately prepared and reconciles to the related revenues and expenses recorded in the financial statements.