Finding Text
Finding #2022-001 ? Timely Completion and Submission of Audit Under Uniform Guidance and Incomplete Schedule of Expenditures of Federal Awards (Material Weakness) Agreements: All Criteria ? 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards: ? #200.512 (a)(1) The auditee must complete and submit the single audit report within nine months of the organization?s year-end. ? #200.508 (b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with #200.510, Financial Statements. Condition and Context ? Requests required to complete the audit were not submitted within sufficient time to allow for audit and reporting prior to the deadline. The following errors and missing required elements were noted and corrected as a result of auditing procedures on the SEFA: ? Expenditures under agreement MHC-22-322B under CFDA 93.665 were not included. ? Expenditures under agreement CBH-22-1003A under CFDA 93.958 were not included. ? Expenditures under Period 4 of Provider Relief Funds (PRF) were included in error. ? There were two instances of COVID-19 programs that did not include the appropriate prefix. ? Subtotals were not included for the following CFDA numbers 93.958; 93.104; and 93.243. ? Expenditures under agreement CDM-21-4462A under CFDA 93.243 were shown included under CFDA 93.959 in error. Cause ? Loss of key management personnel that pulled time resources from key financial personnel. Insufficient internal controls over the preparation and review process for the SEFA. Effect ? The errors noted and above corrections would have led to the SEFA being materially misstated. The single audit report was not filed by the deadline. Recommendations ? Management should seek additional training for the fiscal department on preparation of the SEFA standards. In addition, review processes over the SEFA should be strengthened. Both the preparer and reviewer should have a clear understanding of the required minimum elements. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, reporting, and the trial balance. Any inconsistencies should be resolved before beginning the audit. The compliance supplement should be review for reporting guidance on new Federal programs. Questioned Costs ? None Management Response ? Management will seek additional training in preparation of the SEFA and the applicable standards.