Finding Text
2022-002 ? Identification of Federal Funds for Purposes of Assembling the Schedule of Expenditures of Federal Awards (SEFA); AL Nos. 93.434 and 93.575 Criteria: The Schedule of Expenditures of Federal Awards reported for the year under audit must reflect actual federal expenditures. Condition: Federal expenditures were not correctly identified on the School?s initial SEFA prepared for the audit. Per review of the supporting documentation and inquiry of management, it was determined that the initial SEFA excluded $79,926 of federal expenditures for the Every Student Succeeds Act/Preschool Development Grants ? AL No. 93.434 program (U.S. Department of Health and Human Services, passed through the Minnesota Department of Health, Pass Through Entity Identifying Number 90TP0053) and $26,960 of federal expenditures for the Child Care and Development Block Grant (Child Care and Development Fund (CCDF) Cluster) ? AL No.93.575 program (U.S. Department of Health and Human Services, passed through the Minnesota Department of Human Services, Pass Through Entity Identifying Number 2101MNCCC5). Cause: These federal grants had been identified as Local Revenues, instead of Federal Revenues, which caused the related federal expenditures to be missed in the initial SEFA preparation. Effect: The amount of federal expenditures reported on the SEFA was initially understated by $106,886. The final SEFA included in the single audit reporting package accurately included these amounts. Questioned Costs: None. Repeat Finding of Immediate Prior Year: No. Recommendation: We recommend that the School identify and implement internal controls, such as a grant tracking system, to ensure timely identification and allocation of federal awards and related expenditures.