Finding Text
2023-001 – Schedule Expenditures of Federal Awards (“SEFA”) Preparation
Federal Assistance Listing Number (“FALN”): 93.575, 84.002, 93,600
Name of Program or Cluster: CCDF Cluster, COVID-19 - Child Care and Development Block Grant, Adult Education Basic Grants to States, Head Start Cluster – Head Start
Federal Agencies: Department of Education, Department of Health and Human Services
Pass-through Entities: New York State Office of Children and Family Services (93.575) New York State Education Department (84.002, 93.600)
Compliance Requirement: Reporting
Condition
The Schedule Expenditures of Federal Awards (“SEFA”) submitted by the Settlement needed significant corrections.
Criteria
Per Uniform Guidance, section 200.508, auditee responsibilities include preparing appropriate financial statements, including the Schedule of Expenditures of Federal awards (“SEFA”) in accordance with §200.510 financial statements.
Cause
Internal controls over the preparation of the SEFA regarding federal grant and contract identification, sub-recipient identification, and internal review and approval, were not implemented and operating as necessary.
Effect
The failure to submit an appropriate SEFA as part of the auditee responsibilities could result in the SEFA being materially misstated or misclassified.
Questioned Costs
None
Recommendation
We recommend that the Settlement review their internal controls over preparation of the SEFA. Views of Responsible Officials
See Corrective Action Plan in Appendix 2.