Finding Text
f Expenditures of Federal Awards
(Material Weakness – All Awards)
Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements
for Federal Awards, £200.508 (b) The auditee must prepare appropriate statements including an
accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with
£200.510, Financial Statements.
Condition and Context: Audit procedures noted several errors in the client provided SEFA.
Cause: Insufficient training and internal controls over the preparation and review process for the
SEFA.
Effect: The following errors were noted and corrected as a result of auditing procedures on the
SEFA:
• The NOAA Mission-Related Education Awards was mislabeled and the CFDA # was
missing.
• The Highway Planning and Construction CFDA # was incorrect.
• The State and Local Fiscal Recovery Funds expenditures were overstated by $86,304.
• The Highway Planning and Construction expenditures were overstated by $6,282.
• The SEFA did not include the State Small Business Credit Initiative program of $310,000.
• COVID-19 labels were missing from two programs.
• Award term was not included for any agreements. Questioned Costs – None
Recommendation: Management should seek appropriate training for the fiscal department on
preparation of the SEFA standards. In addition, review processes over the SEFA should be
strengthened. Management should consider contracting with an experienced accounting consultant
should they identify areas that require additional expertise and review after the drafting of the
SEFA and prior to the submission for audit.
Views of Responsible Officials and Planned Corrective Actions: We provided the NOAA Award label and
CFDA# as soon as we were able to obtain it from the program manager. We corrected the CFDA# for the
Highway Planning and Construction as soon as we were able to obtain them from the MEDOT. The
contract documents did not include that information. We reported the revenue for the State
and Local Recovery Funds in the award column. We now know to put the unspent revenue in deferred.
We did not know the $310,000 was Federal Funds, we will know for the future. We will be sure to
include Covid-19 labels and all the award dates in the future. We will for training to prepare a
SEFA document, it will be on our professional development list in this
year.