Finding Text
2023-004: Schedule of Expenditures of Federal Awards (Significant Deficiency)
Condition
The Schedule of Expenditures of Federal Awards (SEFA) was prepared without supervisor review, resulting in several
auditor corrections.
Criteria
Segregation of duties and review procedures should be applied to federal award workpapers.
Cause
The Town has not designed effective internal controls with regard to federal awards.
Effect
Risk that the Town’s information in the SEFA is not accurate, complete, or appropriately presented in accordance with
Uniform Guidance.
Recommendation
Management should establish and implement internal controls with regard to federal awards.
Views of Responsible Officials and Planned Corrective Action
We agree with the finding and we’re working towards developing a written policy.