Finding Text
Information on Federal Program:
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program (passed through the North Dakota Division of Community Services, # 4570-LIHEAP19-
30, 4773-LIHEAP20-30, and 4995-LIHEAP21-30)
U.S. Department of Health and Human Services – Low-Income Home Energy Assistance
Program – Emergency Furnace Repair (passed through the North Dakota Division of
Community Services, Award #4780-LIHEAPEF20-30, 4988-LIHEAPEF21-30, 5131-
LIHEAPEF22-30, 5055-LIHEAPEF-ARPA-30)
AL# 93.568
U.S. Department of Energy - Weatherization Assistance for Low-Income Persons (passed
through the North Dakota Division of Community Services, Award # 5073-DOE22-30)
AL# 81.042
Criteria – Section 200.507 (b) (2) of the Uniform Guidance requires that the auditee prepare the
schedule of expenditure of federal awards (SEFA). Internal controls should be adequately
designed and implemented to allow for the accurate and timely preparation of the SEFA.
Condition – For the year ended June 30, 2023, we reconciled the auditee prepared SEFA to
underlying general ledger amounts and other records. In doing this, we noted that the
expenditures were misstated.
Cause – Internal controls are not designed to allow for the reconciliation of fund expenses to
grant awards.
Effect or Potential Effect – As the entity’s auditors, we were requested to assist in the
preparation of the SEFA and required notes.
Questioned Costs – None noted.
Context – The auditee-prepared SEFA listed expenditures for the entire grant award regardless
of the fiscal year and all expenses incurred after the grant funds were exhausted.
Repeat Finding – This is a repeat finding of 2022-003 from the prior year.
Recommendation – The entity should pull the internal fund income statements by fiscal year
and reconcile to the grant awards on a regular basis.