Finding Text
Finding 2023-001 – Preparation of the Schedule of Expenditures of Federal Awards
Significant Deficiency
Criteria
In order to have a proper basis for the single audit, the entity must have procedures in place in
order to prepare an accurate Schedule of Expenditures of Federal Awards (SEFA).
Condition
During the audit, multiple revisions were made to the SEFA to accurately capture federal expenditures within the fiscal year under audit. These revisions were related to the amount of expenditures reported and the identification of federal programs.
Cause
The City did not accurately prepare SEFA in accordance with 2 CFR 200.510, therefore causing delays in the single audit and risk of inaccurate reporting.
Identification as a Repeat Finding
This is a new finding for fiscal year 2023.
Effect
Delays in the finalization of the single audit and related reporting to grantors for the fiscal year.
Questioned Costs
No questioned costs.
Recommendation
We recommend that the City document the process for how to prepare the SEFA and allow for the necessary time for a review and approval process prior to submitting the SEFA for the audit.
Management’s response
See attached Corrective Action Plan.