Finding Text
Finding 2022-002: SEFA Preparation Agency U.S. Department of Treasury pass-through from City of Alexandria ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number 55-547-8853 Criteria In accordance with 2 CFR 200.508(b), the auditee is required to prepare appropriate financial statements, including the schedule of expenditures of Federal awards (SEFA) in accordance with ?200.510. Condition and Context During our audit, we identified a conditional contribution that ACT had recorded as revenue upon receipt of the advanced funds and before the applicable barrier to recognition had been satisfied. In addition, the full amount of advanced funds was presented on the schedule of expenditures of SEFA. As a result, net assets without donor restrictions were overstated in the financial statements and expenditures were overstated on the SEFA. Cause Controls and processes were not effectively designed to ensure conditional contributions are properly recorded within the general ledger and that the SEFA is complete and accurate. Effect Net assets without donor restrictions and expenses on the SEFA were overstated by $44,999 at December 31, 2022. Repeat Finding No Recommendation We recommend management review policies and procedures over contributions received to ensure timely and effective review for any barriers to recognition and over preparation of the SEFA to ensure completeness and accuracy of the SEFA. Views of Responsible Officials of the Auditee Management agrees with the finding. See corrective action plan. Questioned Cost None.