Finding 622893 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-25
Audit: 45042
Organization: Energy Outreach Colorado (CO)

AI Summary

  • Core Issue: Energy Outreach submitted an incomplete Schedule of Expenditures of Federal Awards (SEFA), missing two federal awards totaling $6,125,613.
  • Impacted Requirements: The SEFA must accurately reflect all federal funding to ensure proper program selection for audits.
  • Recommended Follow-Up: Management should receive training on SEFA reporting requirements to improve communication between program and accounting departments.

Finding Text

Criteria and Condition: Energy Outreach is responsible for preparing a complete and accurate Schedule of Expenditures of Federal Awards (SEFA). Energy Outreach incorrectly prepared the SEFA, omitting activity of two federal awards. Energy Outreach was able to provide a complete and accurate SEFA once management was informed of the omitted programs. Context: Energy Outreach received funding from the U.S. Department of the Treasury as support for utility and emergency rental assistance. The SEFA from management omitted this activity, resulting in the SEFA underreporting federal activity by $6,125,613. Cause: As a result of the financial statement audit, the missing activity was identified. The SEFA provided by management was incomplete due to a lack of communication between the program and accounting departments. Effect: The SEFA is considered inaccurate without including all federal funding received which could result in improperly selecting major programs to be tested. Recommendation: We recommend Energy Outreach?s management obtain appropriate training on the requirements for reporting federal programs on the SEFA.

Categories

Reporting

Other Findings in this Audit

  • 46451 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $5.33M
93.568 Low-Income Home Energy Assistance $1.31M
21.019 Coronavirus Relief Fund $800,000
81.042 Weatherization Assistance for Low-Income Persons $361,844