Finding Text
Criteria Internal controls and procedures should be established to ensure accurate and
complete financial reporting of all federal award related expenditures within the
Schedule of Expenditures of Federal Awards (SEFA) in accordance with
Government Auditing Standards, issued by the Comptroller General of the United
States; and the audit requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance).
Condition Initial amounts reported on the SEFA were not in agreement with expenditure
amounts reflected in the financial statements, as originally prepared. Further,
there were multiple control deficiencies identified and an overall lack of adequate
understanding of procedures and how they were performed.
Cause The Director of Finance & HR is new to her position after fiscal year end and did
not have clear procedures to follow to draft the Schedule of Expenditures of
Federal Awards. There was a limited transition period, if any, for both the Director
of Finance & HR and the Interim Executive Director positions for overlap of
policies and procedures instruction. In addition, there was significant turnover in
key positions during the year, resulting in current management unable to
reperform or explain prior procedures performed.
Effect Several corrections were necessary to ensure the completeness of the SEFA.
Many of the adjustments were identified as a result of audit procedures
performed for the basic financial statements.
Recommendation In order to ensure the accuracy and completeness of the SEFA it is important to
ensure internal controls related to tracking remaining grant related funds are
clearly defined and documented in order to correctly prepare the Schedule of
Expenditures of Federal Awards.
Views of responsible officials See the corrective action plan.