Finding 626443 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 43615
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The SEFA initially reported $1,614,338 in federal expenditures, but an additional $1,321,287 from a major program was not included.
  • Impacted Requirements: The School failed to comply with 2 CFR Section 200.510 (b) regarding the accurate preparation of the SEFA.
  • Recommended Follow-Up: Review and improve policies to ensure all federal expenditures are accurately reported on the SEFA before auditor review.

Finding Text

Criteria: The Uniform Guidance in 2 CFR Section 200.510 (b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Section 200.502.? Condition: The total federal expenditures initially reported in the SEFA totaled $1,614,338. However, further examination determined an additional major program with $1,321,287 in federal funds from another federal pass-through grant should have been reported within the SEFA, increasing the SEFA in total. Cause: The School?s controls did not operate as designed to ensure the proper preparation and review of the SEFA included all direct and pass-through awards. Effect or potential effect: The SEFA was not fairly presented, in all material respects, in relation to the basic statements taken as a whole. Questioned costs: None Context: This is a condition identified based upon our review of the School?s compliance with specified requirements. The prevalence of this finding is detailed in the condition section above. Repeat finding: This is a repeat finding Recommendation: We recommend that the School review its policies and procedures to ensure that federal expenditures are correctly reported on the SEFA by ensuring program personnel review the SEFA awards for completeness prior to release to the auditors. View of responsible officials: The Organization?s management agrees with the finding and recommendation. Management of the Organization has developed a corrective action plan to address this finding.

Categories

Reporting

Other Findings in this Audit

  • 50001 2022-002
    Material Weakness Repeat
  • 50002 2022-002
    Material Weakness Repeat
  • 626444 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $924,302
10.555 National School Lunch Program $822,984
84.425 Education Stabilization Fund $656,402
10.553 School Breakfast Program $498,303
84.424 Student Support and Academic Enrichment Program $33,634