Finding Text
Finding 2024-004 - Material Weakness: Schedule of Expenditures of Federal Awards – Control Finding
ALN 21.027 – COVID-19 – Coronavirus State And Local Fiscal Recovery Funds
Federal Agency: U.S. Department of Treasury
Federal Award Number: PA4HS
Pass-Through Entity: Missouri Department of Higher Education and Workforce Development
ALN 84.116 – Fund For The Improvement Of Postsecondary Education
Federal Agency: U.S. Department of Education
Federal Award Numbers: P116Z230322 and P116Z220015
Pass-Through Entity: None
ALN 11.307 – Economic Adjustment Assistance
Federal Agency: U.S. Department of Commerce
Federal Award Number: N/A
Pass-Through Entity: Bio-STL
Criteria Or Specific Requirement: 2 CFR Section 200.510 states that the auditee must prepare the schedule of expenditures of federal awards (SEFA or “Schedule”) and the Schedule must provide total awards expended for each individual ALN.
Condition: During the audit, the following corrections were made to the SEFA:
• Federal expenditures totaling $4,892,149 were classified under the wrong program ALN. The reclassification of these expenditures resulted in a change to the major program determination.
• Federal expenditures totaling $181,184 were not included on the SEFA.
• Federal expenditures were adjusted by $1,933,710 to accrue reimbursable expenditures related to fiscal year 2024.
The Schedule provided did not identify amounts passed through to subrecipients.
Cause: Management does not have an internal control process in place to ensure an accurate schedule.
Effect: The possibility exists that errors within the Schedule could become material to the financial statements or result in an incorrect major program determination.
Questioned Costs: Not applicable.
Context: A sufficient review of the Schedule did not occur so errors were not detected.
Identification As A Repeat Finding: Not applicable.
Recommendation: We recommend that management assign the review of the SEFA to an individual that is knowledgeable about federal grants. In addition, grant agreements should be retained in a central repository to aid in the review of the SEFA. Lastly, the CFO should perform a year-over-year comparison of the SEFA by ALN and make inquiries of agencies regarding significant variances.
Views Of Responsible Officials: The Grant Accountant, in collaboration with the Comptroller and Director of Sponsored Programs, will compile SEFA data on a quarterly basis and reconcile it against CX reports. The Sponsored Programs Director will verify all Assistance Listing Numbers (ALNs), subrecipient amounts, and accruals. Documentation of all federal awards and drawdowns will be maintained in a centralized repository for internal and audit access.