Finding Text
Criteria: Under Uniform Guidance, auditees are required to submit a Schedule of Expenditures of Federal Awards that include all federal monies expended during the fiscal year.
Condition: The Schedule of Expenditures of Federal Awards for 2023 did not include $1,224,086 of federal award expenditures.
Context: After the issuance of the combined financial statements and related schedule of expenditures of federal awards for the year ended December 31, 2023, management discovered that certain expenditures were omitted from the Schedule of Expenditures of Federal Awards.
Cause: The Companies’ internal control over review of the Schedule failed to detect the omitted awards.
Effect: Reporting of expenditures over federal awards was not complete.
Recommendation: The Companies should enhance their internal controls over intake and tracking of grants, including identification as federal awards, to produce a complete and accurate Schedule of Expenditures of Federal Awards.
Views of Responsible Official: See management’s Corrective Action Plan on page 35.