Finding Text
Criteria
Title 2: Grant and Agreements, Part 200 – Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (“Uniform Guidance”), Subpart F Audit Requirements,
specifically §200.510 (b) Schedule of expenditures of Federal Awards:
The auditee must 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 §200.502 - Basis for determining Federal awards expended. While not required,
the auditee may choose to provide information requested by Federal awarding agencies and passthrough
entities to make the schedule easier to use. For example, when a Federal program has
multiple Federal award years, the auditee may list the amount of Federal awards expended for each
Federal award year separately. At a minimum, the schedule must include:
List of individual Federal programs by Federal agency. For a cluster of programs, provide the
cluster name, list individual Federal programs within the cluster of programs, and provide the
applicable Federal agency name.
Total Federal awards expended for each individual Federal program and the Assistance Listing
Number (ALN) or other identifying number when the ALN information is not available. For a
cluster of programs, the total award expended for the cluster must also be provided.
For Federal awards received as a subrecipient, the name of the pass-through entity and the
identifying number assigned by the pass-through entity must be included.
Condition
In performing procedures over the completeness and accuracy of El Proyecto del Barrio, Inc.’s
(El Proyecto) schedule of expenditures of federal awards (SEFA) for the year ended September 30,
2023, we noted that the SEFA prepared by El Proyecto contained an incorrect ALN related to the
California State Preschool Program (CSPP). The ALN was initially presented as 93.975 instead of
93.575.
Cause
During the review of the SEFA, Finance Staff reviewed over 1,700 data fields for accuracy and
completeness. Unfortunately, one (1) data field had an undetected transposition error in the ALN
number causing inaccurate SEFA information.
Effect
An incorrect SEFA may result in an inefficient audit approach and incorrect program risk assessment
process which could lead to incorrect determination of major programs that should be included in the
audit testing. Also, failure to properly allocate costs to correct federal programs can lead to federal
funding being withdrawn or expenditures being paid with the incorrect funding source.
Questioned Costs
None.
Recommendation
The SEFA, which is prepared by the auditee and considered supplementary information to the financial
statements, is a key part of the reporting package required by the Uniform Guidance. The SEFA also
serves as the primary basis that auditors use to determine which programs will be audited as part of
the single audit. Therefore, the auditee’s responsibility for preparing an accurate and complete SEFA
is critical. We recommend that El Proyecto reviews its existing process for preparation and review
of the SEFA and incorporate additional procedures as necessary to the current review checklist,
including inquiry with the Federal granting agency or pass-through entity, when necessary, and other
research procedures to help ensure the accuracy and completeness of the SEFA and that errors are
identified and corrected before submission. In addition, we recommend that the grant tracking sheets
are appropriately reconciled to the accounting records to ensure payments do not exceed budgeted
amounts, especially for contracts that include multiple federal fiscal years of funding.
Views of Responsible Officials and Planned Corrective Action
Ricardo Ornelas, Chief Financial Officer, reviewed the processes for preparation of the SEFA and
incorporated additional procedures to ensure errors are identified and corrected prior to submission,
including multiple levels of review for the prepared SEFA to ensure the information reported in the
SEFA agrees to the contract, amendment(s), payment confirmation, and underlying accounting
records.
In addition, management will adopt the recommendations above.