LOS ANGELES CENTERS FOR ALCOHOL AND DRUG ABUSE

LOS ANGELES CENTERS FOR ALCOHOL AND DRUG ABUSE Schedule of Findings and Questioned Costs For the year ended June 30, 2019 Section II ? Financial Statements Findings Finding 2019-001. See description of the finding in section III that also relates to federal awards. Section III ? Federal Award Findings and Questioned Costs Finding 2019-002. Schedule of Expenditures of Federal and Non-federal Awards Reconciliation. Condition: The Schedule of Expenditures of Federal and Non-federal Awards ("SEFA") provided was not prepared accurately and completely for the fiscal year end. Criteria: Section 200.510(b) of the Uniform Guidance requires auditees to prepare and reconcile a SEFA for the period covered by the auditee's financial statements which must include the total federal awards expended. Internal controls should be put in place to assure that the SEFA is accurately and timely completed, reviewed and approved by management one month after the fiscal year end. Cause: The Director of Finance responsibilities included the reconciling and reviewing the SEFA after year end. The SEFA was not reconciled and reviewed before the start of the independent audit. Effects: Failure to review and reconcile the SEFA on a timely basis may lead to the SEFA's presentation to be noncompliant with applicable standards. Recommendations: Procedures should be implemented whereby a designated member of management is responsible for the completion and accuracy of the SEFA. All contracts should be thoroughly reviewed to ascertain the correct federal amount is included in the SEFA. Views of Responsible Officials: LACADA will implement a policy where a designated manager will be responsible for the completion and accuracy of the SEFA. The designated manager will review all contracts thoroughly to ascertain the correct federal participation percentages and federal expenditures. Section IV ? Summary Schedule of Prior Year Findings No matters reported.