Finding Text
Finding 2022-005 Preparation of Schedule of Expenditures of Federal Awards
Condition/Context
Our reconciliation of the Schedule of expenditures of Federal awards (“schedule”) to the underlying accounting and other records used in preparing the financial statements revealed that the Coronavirus State and Local Fiscal Recovery Funds Federal award program had been excluded from the schedule. Federal expenditures for this Federal award program totaled $14,798 in 2022.
Criteria
Uniform Guidance requires that auditees prepare a schedule for the period presented in the financial statements. The schedule must include the total Federal awards expensed during the period represented in the financial statements.
Cause
CMSDC did not properly reconciled the schedule to the underlying accounting and other records used to prepare the financial statements.
Effect
The schedule was understated by $14,798.
Recommendation
We recommend that CMSDC updates its processes for the preparation of the schedule to include more levels of review of the schedule, accounting and other records used to prepare it.
Organization’s Management Response
See corrective action plan.