Finding Text
No. 2022-001: Preparation of the Schedule of Expenditures of Federal Awards ? SAPT (CFDA 93.959) Condition: As a part of the audit engagement, we assisted management in the preparation of the Organization?s Schedule of Expenditures of Federal and State Awards. Although management reviewed and approved the Schedule of Expenditures of Federal and State Awards and related footnotes, management?s current system of internal control lacks adequate controls to ensure the propriety and completeness of the information in the Schedule of Expenditures of Federal and State Awards, including disclosure in the related footnotes. Criteria and Cause: Internal control over financial reporting includes management?s control over the financial preparation of the Schedule of Expenditures of Federal and State Awards and related footnotes. An auditor can assist in assembling or drafting the Schedule of Expenditures of Federal Awards and related footnotes; however, an auditor cannot be a part of the Organization?s internal control. Management does not have internal controls in place to ensure propriety and completeness of the information in the Schedule of Expenditures of Federal and State Awards, including disclosure in the related footnotes. Effect: Under the current process, errors or omissions in the schedule and footnote disclosures in the Schedule of Expenditures of Federal and State Awards might not be prevented or detected and corrected on a timely basis by the Organization?s management. Recommendation: We recommend the Organization put procedures in place for management to be able to complete the Schedule of Expenditure of Federal and State Awards and any disclosures necessary for the footnotes.