Finding Text
Finding 2023-007 Schedule of Expenditures of Federal Awards
Type of Finding: Internal Control Deficiency and Compliance Finding
Condition: The City did not prepare a complete and accurate Schedule of Expenditures of Federal Awards and State Transportation Assistance ("SEFA").
Criteria: The Schedule of Expenditures of Federal Awards and State Transportation Assistance is required to be prepared by the Auditee under federal and state regulations.
Cause: Federal and state expenditures are not tracked by funding source. Reimbursements from funding sources are not always allocated accurately to federal and state revenue accounts when received.
Effect: Total expenditures of federal awards and state transportation assistance reported on the SEFA as required for the single audit was not accurate, requiring additional research and audit adjustments.
Repeat Finding: Not a repeat finding.
Recommendation: RBT recommends that the City obtain a clearer understanding of the SEFA and the preparation process such that the annual compilation of data is complete and accurate.
Auditee's Response: See corrective action plan.