City of MandevilleLocal Government

PROCEDURES OVER PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Criteria: The City should have systems of internal accounting control which ensures the schedule of expenditures of federal awards (SEFA) is presented in accordance with Title I U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) on a timely basis. Condition: The City did not have adequate policies and procedures in place to prepare an accurate and complete SEFA on a timely basis. Universe /Population: None Sample size: None Questioned Cost: Not applicable Cause: The City does not have adequate policies and procedures in place for SEFA preparation. Effect: The lack of completing a detailed review over the SEFA created delays in the audit and significant adjustments necessary to correct the balances to the reconciliations and other support. This created delays with completing the audit process. Adjustments of $2,998,397 were required to decrease the federal expenditure balance in the original SEFA provided by the City for the audit. Recommendation: The City should strengthen its controls including its review and approval processes over the identification of federal programs and the information and balances that are accumulated and reported on the SEFA to make sure the expenditures reported are an accurate representation of federal expenditures and based on the reporting requirements provided in the federal award and the compliance supplement. View of Responsible Official: The City concurs with the finding and will comply with the recommendation