Finding Text
2024-003 PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis.
Universe/Population: Not applicable.
Condition: The City did not perform final reconciliations of the American Rescue Plan Act (ARPA) and the Federal Emergency Management Agency (FEMA) expenditures necessary to prepare an accurate and complete SEFA on a timely basis.
Cause: Due to the complexity of the calculations for recognizing ARPA and FEMA expenditures on the SEFA, the City provided adjustments to the original SEFA provided to the auditors.
Effect: The original SEFA required adjustments necessary to correct the balances reported as federal expenditures for ARPA and FEMA.
Questioned Costs: For the purposes of this finding, there were no questioned costs.
Recommendation: The City should strengthen its controls over the reconciliation of federal program expenditures and associated calculations to ensure the information and balances that are accumulated and reported on the SEFA are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement.
Management’s Response: The City concurs with the observation and will implement procedures in 2024 as recommended.