Finding Text
Program Name – All
Assistance Listing 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:
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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.
Questioned Costs – None
Cause/Effect – The SEFA was not accurately stated as a result of not identifying certain federal award expenditures.