Finding Text
Portions of the supporting documentation provided by management for the Schedule of Expenditures of Federal Awards (SEFA) did not appear to be accurate. Upon further investigation we learned that this support was pulled directly from the general ledger’s grant coding, which had errors that management had noted during the prior year as a result of an accounting software change, but never corrected in the general ledger, even though they properly reported the correct allowable expenditures by grant in their Federal grant funding draw requests. Therefore, the supporting documentation related to the SEFA which was provided for the audit had to be corrected to accurately reflect the total allowable expenditures per each Federal grant. Even though management identified the coding errors in the general ledger during the prior year’s audit, they did not fully correct these errors in the general ledger, which was used to provide support for the SEFA. Therefore, we deem this to only be a significant deficiency in internal control over the preparation of the support of the SEFA, since this was a carryover of the issues noted in the prior year due to the software upgrade and the fact that the prior audit was not completed until June 2024, nine months into the Organization’s current fiscal year. It should be noted that the total expenditures actually reported by Federal grant on the SEFA were accurate.