Finding Text
Finding 2023-002: Support for Schedule of Expenditures of Federal Awards in the Accounting
System
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the
auditee must be able to identify all Federal awards received and expenses and the Federal programs
under which they were received.
Condition: Detailed invoices were available to support the amounts reported on the Schedule of
Expenditures of Federal Awards (SEFA), however the expenses had not been accurately classified
by award within the general ledger. It is not possible to extract a program income statement to
support the expenditures reported for each program from the accounting system.
Cause: Although they do have categories set up by program, NEW was not tracking the charges
reimbursed by the Federal Government separately within the general ledger.
Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information
within the accounting system, there is an increased potential for inaccurate reporting.
Questioned Costs: Indeterminable
Context: The account structure was not set up to track the expenses charged to the Federal
Government.
Identification as a Repeat Finding, if Applicable: Finding 2022-002
Recommendation: We recommend that NEW ensure that support for the Schedule of Expenditures
of Federal Awards (SEFA) can be extracted from the accounting system (i.e. a program income
statement).