Finding Text
Criteria or specific requirement: Per the 2 CFR 200.502, Basis for Determining Federal Awards Expended, the schedule of expenditures of federal awards (SEFA) for the period covered by the financial statements must be complete, accurate, and include the total federal awards expended. Per the 2022 OMB Compliance Supplement for ALN No. 32.009, Allowable costs must meet general criteria for allowability, including being necessary and reasonable for the performance of the Federal award, allocable thereto and adequately documented. Condition The amounts presented for the Emergency Connectivity Fund Program on the District?s SEFA were adjusted by $707,123. Of this amount, $138,673.08 was for ineligible cases submitted for reimbursement that are not allowable under the program. Questioned costs: $138,673.08. Context Federal award requires accurate and reliable documentation of allowable costs and SEFA reporting. Cause The District was unaware cases for laptops would be deemed ineligible. They believe the remaining amount rejected of $568,449 for warranties and licenses will get accepted during litigation but won?t have a resolution during 2022. Therefore, the SEFA was adjusted for the full amount of $707,123. Effect An adjustment of $707,123 was required to be made to the District?s SEFA and $138,673.08 of this amount was deemed ineligible for reimbursement. Repeat Finding: No Recommendation We recommend that the District improve the review process over tracking and reporting reimbursements of federal expenditures. Views of responsible officials: There is no disagreement with the audit finding.