Finding Text
2024-007: Preparation of the Schedule of Expenditures of Federal Awards
Questioned Costs: N/A
Criteria: The Uniform Guidance Subpart F section 200.510 requires the preparation of the Schedule of Expenditures of Federal Awards (SEFA) to include an accurate reporting of federal awards expended based on the terms and conditions of the grants. For the SEFA to be prepared accurately and properly report the amounts expended for federal awards, a system of controls should be in existence that includes the timely preparation and review of the amounts reported on the SEFA.
Condition: The SEFA prepared by the School Board’s personnel did not properly report the correct amount of the federal awards expended for the Federal programs administered by the School Board. The amount of expenditures reported included the grant award amounts and not the federal expenditure amounts of these programs.
Cause: A formal review of the SEFA by an individual not involved in the preparation of the schedule of expenditure of federal awards was not performed.
Effect: The SEFA provided to us did not contain the correct amounts of expenditures for federal awards incurred during the fiscal year which is the basis used to determine the major federal programs to be audited in a fiscal year. Major programs selected and tested by the auditor may be incorrect and result in additional costs to the School Board for any revisions and testing of additional programs.
Recommendation: The School Board should strengthen its controls including its review and approval processes over the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal costs.
View of Responsible Official: Management agrees with the reported finding. See Management’s Corrective Action Plan.