Finding 970152 (2021-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-04-18

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards (SEFA) is incomplete and inaccurate, missing some federal expenditures due to reliance on outdated information.
  • Impacted Requirements: Compliance with 2 CFR 200.510, which mandates accurate reporting of federal awards in financial statements.
  • Recommended Follow-Up: Conduct a thorough review of all grant agreements, create a checklist for anticipated awards, and perform an interim SEFA review to ensure accuracy before year-end.

Finding Text

Completeness and accuracy of Schedule of Expenditures of Federal Awards (SEFA)- (Significant Deficiency) Cluster: Not applicable Sponsoring Agency U.S. Department of Housing and Urban Development Award Name Home Investment Partnerships Program Award Number Not applicable Assisting Listing Number 14.239 Award Year FY 2002 Pass-through entity Not applicable Criteria: 2 CFR 200.510 Financial statements requires auditees to prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Condition: Not all federal expenditures were included on SEFA. Through our discussions with management, we identified federal expenditures that were excluded from SEFA. Cause The COVID-19 pandemic resulted in the receipt and expenditure of additional federal funds. There was a limited information regarding new awards and reliance on the prior year information. Effect A SEFA that is not complete and accurate could impact the scoping of an entity’s major programs and result in incomplete information being provided to the federal government.. Questioned Cost: None noted Recommendation: Review all grant agreements. Develop checklist of anticipated awards in advance of the year and also complete an interim SEFA to identify inconsistencies earlier in the fiscal year. We recommend a formal review of final year-end SEFA for completeness and accuracy evidenced by a formal sign-off/approval. Management's Views and Corrective Action Plan Management's response is included in "Management's View and Corrective Action Plan" at the end of this report after the schedule of findings and questioned cost.

Categories

Reporting Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $2.26M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $561,862
14.228 Covid-19 - Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $458,135
14.871 Section 8 Housing Choice Vouchers $204,771
10.427 Rural Rental Assistance Payments $100,270
10.769 Rural Business Enterprise Grants $60,000
10.415 Rural Rental Housing Loans $44,968