The Community College FoundationNon-Profit

2023-002 – IMPROPER IDENTIFICATION OF FEDERAL AWARDS Criteria: §200.302 of the Uniform Guidance states that "The financial management system of each non-Federal entity must provide for the following: Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received." Additionally, §200.508 of the Uniform Guidance states that the auditee must "Prepare appropriate financial statements, including the schedule of expenditures of Federal Awards." As such, it is the auditee's responsibility to identify all federal funding received and is tracked sufficiently to ensure completeness and accuracy of the Schedule of Expenditures of Federal Awards (SEFA). Condition: The Foundation included nonfederal activity in the preparation of the SEFA. Cause: The SEFA was not sufficiently prepared and reviewed by personnel with adequate knowledge of the requirements of the Uniform Guidance. Effect: The result was that $901,768 in state and county awards were improperly included on the SEFA. Recommendation: We recommend that the Foundation enhance its tracking of federal expenditures within the general ledger and ensure personnel receive frequent Uniform Guidance training to ensure proper tracking and reporting of all federal awards. Foundation’s Response: Management agrees to enhance its tracking of federal expenditures within the general ledger. Management agrees with the auditors’ recommendations to ensure that personnel receive frequent Uniform Guidance training. We also agree this will help to ensure the proper tracking and reporting of all federal awards. Management acknowledges that the lack of understanding may have resulted in the misstatement of awards included in the SEFA. We expect to have training arranged as soon as November 30, 2024.