Finding Text
Criteria: Internal controls should be designed to capture the City’s federal expenditures in order to ensure that an accurate Schedule of Expenditures of Federal Awards (SEFA) can be prepared.
Condition: Uniform Guidance section 200.510 requires the auditee to prepare a SEFA. A complete and accurate SEFA was not provided to us.
Cause: The records were not maintained in a manner which allowed the SEFA to be prepared in an efficient manner to ensure accuracy anView of Responsible Official: Management concurs with the finding. Controls relating to the
preparation of the SEFA will be designed to capture the City’s federal expenditures in order to properly prepare the SEFA.d completeness.
Questioned Costs: None.
Effect: The SEFA is used by the auditor to determine which federal programs are to be audited as major programs and to accurately report expenditures to the federal government and granting agencies. Major programs may not be properly identified in accordance with the Uniform Guidance.
Recommendation: All information should be included on the SEFA by employees familiar with the grant awards. The general ledger should be categorized by federal programs/program year in order to capture the correct expenditures by programs. A review should be performed by someone other than the preparer for accuracy and completeness.
Identification of a repeat finding: This is a similar finding from previous audits, 2022-007, 2021-007, 2020-006, 2019-007, and 2018-007.
View of Responsible Official: Management concurs with the finding. Controls related to the preparation of the SEFA will be designed to capture the City's federal expenditures in order to properly prepare the SEFA.