Finding Text
2 CFR Subpart F § 200.510(b) requires the auditee prepare a Schedule of Expenditures of Federal
Awards (the Schedule) for the period covered by the Consortium’s financial statements which must
include the total federal awards expended as determined in accordance with § 200.502.
At a minimum, the schedule must:
(1) List individual Federal programs by Federal agency.
(2) For Federal awards received as a subrecipient, the name of the pass-through entity
and identifying number assigned by the pass-through entity must be included.
(3) Provide total Federal awards expended for each individual Federal program and the AL number or
other identifying number when the AL information is not available.
(4) Include the total amount provided to subrecipients from each Federal program.
(5) For loan or loan guarantee programs described in § 200.502 Basis for determining Federal awards
expended, paragraph (b), identify in the notes to the schedule the balances outstanding at the end
of the audit period.
(6) Include notes that describe the significant accounting policies used in preparing the schedule,
and note whether or not the auditee has elected to use the 10 percent de minimis cost rate as
covered in § 200.414 Indirect (F&A) costs.
The Consortium chose to report their Schedule of Federal Awards on a cash basis. The fiscal
agent's accounting system operated on a full accrual basis and the federal schedule that was
presented for audit was taken from the CFIS system for tracking federal expenditures for the Ohio
Department of Job and Family Services. However, the Consortium was not able to provide support
from the accounting system to reconcile the amounts reported on the Schedule to the accounting
system.
Due to the lack of support for the federal schedule, we were unable to ensure that activity upon
which we based our testing of the compliance for major federal programs was complete and therefore
we could not pinion over the major federal programs’ compliance. Noncompliance with grant requirements as well as errors and omissions on the Schedule of Expenditures of Federal Awards could have an adverse effect on future grant awards by the awarding
agency in addition to an inaccurate assessment of major federal programs that would be subjected to audit.
Management should review all grant and loan award documents in order to execute policies and procedures
which help ensure compliance with grant requirements, including Schedule reporting requirements. The
Consortium should implement a system to track all federal expenditures and related information separately
from other expenditures and report federal expenditures with proper support including, but not limited to,
grant agreements, calculation of the expenditures, and any federal reporting requirements. This will help