Finding Text
Finding 2022-003: Schedule of Expenditures of Federal Awards presentation
Criteria: 2 CFR §200.510 Financial Statements, (b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the
total Federal awards expended. At a minimum, the schedule must: (1) list individual Federal Programs by Federal agency, (2) for Federal awards received as a subrecipient, the name of the pass-through entity and identifying
number assigned by the pass-through entity must be included, (3) provide total Federal awards expended for each individual Federal program and the CFDA number or other identifying number when the CFDA information is not
available, (4) Include the total amount provided to subrecipients from each Federal program, (5) for loan or loan guarantee programs identify in the notes to the schedule the balances outstanding at the end of the audit period.
Also the Compliance Supplement identifies that: "Transfers of Federal awards to another component of the same auditee under 2 CFR part 200, subpart F, do not constitute a subrecipient or contractor relationship".
Condition: The Organization provided unadjusted balance for expenditures of federal awards for the year ended December 31, 2022 for audit purposes.
Cause: There are certain procedures not in place to analyze the expenditures incurred for proper presentation by program.
Effect or Potential Effect: Expenditures of federal awards were overstated before correcting reclassifications and adjustments were made.
Recommendation: We recommend policies and procedures be implemented that include a review of all expenditures of federal awards by management to determine the proper reporting by program and proper
accounting period treatment based on the type of expense incurred, before presentation in the Schedule of Expenditures of Federal Awards.