BOLLINGER COUNTY HEALTH CENTERLocal Government

PREPARATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) CRITERIA: UNIFORM GUIDANCE - TITLE 2 C.F.R.200.510(B) REQUIRES THAT THE AUDITEE PREPARE THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS, AND INCLUDE SPECIFIC DISCLOSURE REQUIREMENTS. CONDITION: THE CENTER PREPARED A DRAFT COPY OF THE SEFA. HOWEVER, THE CENTER'S METHODS OF COLLECTION OF THE INFORMATION REQUIRED, OMITTED SEVERAL GRANTS AND REQUIRED DISCLOSURE INFORMATION. CAUSE: THIS WAS THE INITIAL YEAR FOR A SINGLE AUDIT FOR THE CENTER. THEREFORE, THE CENTER WAS NOT FULLY AWARE OF THE DETAILS NEEDED TO COMPLETE THE SEFA. ALSO, THE CENTER RECEIVED SEVERAL GRANTS IN WHICH THE AMOUNT OF FEDERAL FUNDING WAS NOT FULLY DISCLOSED FROM THE FUNDING AGENCY. EFFECT: THE INITIAL SEFA INDICATED THAT THE LEVEL OF FEDERAL FUNDING WAS LESS THAN $750,000.00 AND THAT A SINGLE AUDIT WAS NOT REQUIRED. THE AUDIT DISCLOSED ADDITIONAL SOURCES OF FEDERAL FUNDING, WHICH THEN EXCEEDED THE THRESHOLD FOR A SINGLE AUDIT AND THE AUDIT REQUIREMENTS WERE UPDATED ACCORDINGLY. EXTENSIVE ADDITIONAL TIME WAS REQUIRED TO SOLICIT THE ASSISTANCE LISTING NUMBERS, THE FEDERAL AWARD NUMBERS, CONTRACT NUMBERS, AND THE EXACT AMOUNT OF FEDERAL EXPENDITURES OF EACH PROGRAM. QUESTIONED COSTS: THERE ARE NOT ANY QUESTIONED COSTS AS A RESULT OF THIS FINDING. PERSPECTIVE: THIS WAS THE INITIAL SINGLE AUDIT OF THE CENTER. THE CENTER DID NOT INITIALLY BELIEVE THAT A FEDERAL SINGLE AUDIT WOULD BE REQUIRED. AS SUCH, THE CENTER DID NOT HAVE AN ADEQUATE PROCESS IN PLACE TO IDENTIFY THE FEDERAL EXPENDITURES AND DISCLOSURE INFORMATION REQUIRED FOR THE SEFA. FURTHER, THE AMOUNT OF FEDERAL EXPENDITURES FOR CERTAIN GRANTS WAS NOT READILY AVAILABLE FROM THE GRANTOR AGENCY. THE CENTER WAS REQUIRED TO CONTACT THE GRANTOR AGENCIES TO VERIFY THE AMOUNTS OF FEDERAL EXPENDITURES INCLUDED WITHIN THE GRANTS. RECOMMENDATION: I WOULD RECOMMEND THAT THE CENTER ADOPT BETTER PROCEDURES TO IDENTIFY FEDERAL EXPENDITURES INCLUDED WITHIN EACH GRANT, AND ALSO THE FEDERAL LISTING NUMBERS, FEDERAL AWARD IDENTIFICATION NUMBERS, AND CONTRACT NUMBERS ASSOCIATED WITH THE GRANTS. MANAGEMENT RESPONSE: THE CENTER AGREES WITH THE FINDING. THE CENTER WILL REVIEW AND EXPAND PROCEDURES TO ADEQUATELY IDENTIFY FEDERAL EXPENDITURES AND RELATED IDENTIFICATION NUMBERS.