Finding Text
Preparation of Schedule of Expenditures of Federal Awards
Assistance Listing Numbers Name of Federal Program or Cluster
84.425 Education Stabilization Fund Under
the Coronavirus Aid Relief and
Economic Security Act
97.036 Disaster Grants - Public Assistance
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) that includes an accurate reporting of federal awards expended
based on the terms and conditions of the grants. In order 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.
Universe/Population Size: None
Sample Size: None
Condition: The initial SEFA prepared by the Foundation’s personnel did not reconcile the federal
expenditures reported on the SEFA to the federal revenue received by granting agency.
Effect: The SEFA provided to us did not contain the correct amounts of federal expenditures which is
the basis used to determine the major federal programs to be audited in a fiscal year. Inaccurate
reporting may result in improper auditing of the wrong federal programs in any given year and noncompliance
with federal regulations.
Cause: The Foundation receives multiple sources of revenues, including both federal and state, which
fund the costs of the charter schools. The classification of program revenue and therefore federal
expenditures was not accurate and not detected during internal review, which resulted in errors on the
initial SEFA.
Recommendation: The Foundation should strengthen its controls including its review and approval
processes over the information and balances that is accumulated and reported on the SEFA to make
sure the expenditures reported are an accurate representation of federal reimbursements.