Finding Text
Type: Federal Award, Significant Deficiency, Controls over Schedule of Expenditures of Federal Awards (SEFA)
Assistance Listing Number:
U.S. Department of Housing
14.218 Community Development Block Grant
U.S. Department of Treasury
21.019 Coronavirus Relief Fund
Criteria/Requirement:
The Organization’s accounting system should clearly identify federal expenditures with minimal adjustments in accordance with 2 CFR 200.302.
Condition/Context:
The Organization did not identify all federal awards and significant audit adjustments were required to the SEFA prepared by management.
Cause:
The Organization received additional funding due to COVID-19 increasing the complexities of tracking by specific components of the award. A significant portion of the tracking is maintained in manual spreadsheets outside of the accounting system.
Effect:
Total expenditures by federal funding source may not be properly reported and Uniform Guidance reporting may be inaccurate.
Questioned Costs:
None.
Recommendation:
The Organization should implement additional procedures and controls to accurately capture all activity under federal awards in preparing the SEFA.
Management’s Response:
The Organization experienced disruption due to COVID-19 that had impacts on capacity. New contracts and source of funding are now being identified and recorded in the accounting system.