Finding Text
2023 -005 Review And Approval Of The Schedule Of Expenditures Of Federal Awards (SEFA) – Significant Deficiency
Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e. auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The School should have a written process in place to perform a review of the SEFA, to include evidence of the resolution of variances, as well as a process to document the overall review and approval to ensure proper presentation, completeness, and accuracy of the SEFA.
Condition: During the course of the audit, the engagement team noted a review process of the SEFA had been implemented during 2023. However, there was no formal written review process.
Cause: The entity does not have a written process in place to review the SEFA, to include retaining evidence of the resolution of variances, as well as documentation of the overall review and approval.
Effect: Potential misstatement could occur if expenditure amounts are not accurately presented on the SEFA.
Questioned Costs: Not applicable.
Context: Not applicable.
Identification As A Repeat Finding: Yes.
Recommendation: The School should develop a written consistent process to review the SEFA. Issues identified during the course of the review should be investigated and resolved in a timely manner.
View Of Responsible Officials: While there was a review of the SEFA, the documentation of said review did not occur properly. Management has put in place a process to document preparation/review of the SEFA evidenced by signature and date.