Finding Text
2023-001 Schedule of Expenditures of Federal Awards (SEFA) (Significant Deficiency - Reporting)
Criteria:
2 CFR Part 200, Subpart F Section 200.502 (Uniform Guidance) states: “The auditee shall prepare a Schedule of
Expenditure of Federal Awards for the period covered by the auditee’s financial statements”. Further, reporting
compliance requirements require the District to prepare financial reports that agree to the Schedule of Federal Awards.
Condition:
The City of Lemoore did not prepare a timely, complete, and accurate Schedule of Expenditures of Federal Awards (SEFA)
that agreed to financial reports submitted to the federal awarding agency. Federal expenditures under the Public Safety
Partnership and Community Policing Grants (ALN 16.710) were omitted from the originally submitted SEFA. These
expenditures were recorded in the entity’s general ledger during the fiscal year ended June 30, 2023, but were not
reported on the SEFA.
Questioned Cost:
None noted, as the expenditures were properly recorded in the entity’s financial records but were omitted from the
original SEFA.
Cause:
Lack of internal control procedures over completion of the SEFA: the department managing the grant failed to
communicate approval of the grant to reporting department (Finance), therefore the nature of the federal grant
expenditures was not known and omitted from the SEFA in fiscal year ending June 30, 2023.
Effect:
An untimely, incomplete SEFA may result in non-compliance with the Uniform Guidance compliance requirements and
could impact the City’s eligibility to receive federal awards in the future.Recommendation:
We recommend that the City of Lemoore develop and implement internal control procedures for the timely, complete,
and accurate preparation of the SEFA in accordance with Uniform Guidance compliance requirements.
Management’s Response:
See Corrective Action Plan.