Finding Text
Program Name ? ALL CFDA Number ? N/A Finding Type ? Material Weakness Criteria ? 2CFR Part 200 requires an auditee to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Condition ? During our audit, we noted that DTC did not have a system in place to correctly identify and record the federal expenditures. We noted certain matters that collectively constituted a material weakness in reporting the federal expenditures. The items noted are as follows: ? Due to lack of coordination between the grants department and the fiscal department, FTA drawdowns were not performed on a timely basis. Timing differences were noted in reporting the expenses in the financial statements and the federal drawdowns. It was further noted that a reconciliation of the grant-related expenses with the general ledger was not performed on a timely basis. ? The grants department performed a grants reconciliation which resulted in paybacks and drawdowns of federal funds under various projects. Questioned Costs ? None Cause/Effect ? The SEFA was not accurately stated as a result of not identifying certain federal award expenditures. Identification of a Repeat Finding ? This is not a repeat finding from the immediate previous audit. Recommendation ? Although an improvement was noted in the grants reconciliation process from the previous years, we recommend that DTC?s internal controls should be adequately designed to ensure that the general ledger and the grant records are reconciled and discrepancies if any are brought to attention in a timely manner. Additionally, DTC should strive to implement controls over the preparation of the SEFA to ensure that amounts are properly recorded on SEFA. View of Responsible Official and Corrective Action Plan ? DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will perform periodic reconciliations throughout the fiscal year between grants records and the general ledger. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained.