Finding Text
Preparation of Schedule of Expenditures of Federal Awards Condition: As is the case with many municipalities, the Village administers an array of federal grants. The Village was unable to provide us with a schedule of federal expenditures with the appropriate allocation of funds by CFDA number and funding source.
Criteria: Uniform Guidance, section 300, requires that the Village “identify, in its accounts, all federal awards received and expended and the federal programs under which they were received. Federal program and award identification shall include, as applicable, the CFDA title and number, award number and year, name of the federal agency, and name of the pass-through entity. In addition, the Village is required to “prepare appropriate financial statements, including the schedule of expenditures of federal awards in accordance with section 310.”
Effect: Because the auditors do not have the in-depth knowledge of the Village’s general ledger detail, it is possible that a grant award could be missed or reported in error.
Cause: The Village did not have the resources to devote to preparing the schedules.
Recommendation: We recommend that the Village assign an individual internally that is qualified to prepare these schedules.