MADISON, COUNTY OF

Significant Deficiency: Preparation of the Schedule of Expenditures of Federal Awards Prior Audit Finding: 2020-006 and 2021-005 Condition. A complete schedule of expenditures of federal awards (“SEFA”) was not provided. Criteria or Specific Requirements. The Uniform Guidance requires grantees to prepare a SEFA which properly identifies all federal awards expended and includes the following for each federal award: • The federal granting agency and program; • The five-digit Catalog of Federal Domestic Assistance (CFDA) number; • The grant’s name (as specified by the grant award); • Any identifying numbers assigned by pass-through entities; and • The expenditures for each grant on the accrual basis. Possible Effect. Failure to provide a complete and accurate SEFA can lead to a failure to identify the need for an annual financial audit in accordance with the standards outlined in the Uniform Guidance. Additionally, an inaccurate SEFA could lead to an improperly planned and executed single audit. Questioned Costs. None. Context. Substantive procedures revealed additional grant funds that were federally-derived, not included on the SEFA. Recommendation. The appropriate County official should review and revise, as needed, the policies and procedures in place to ensure that all federal grants are properly included in the SEFA. We also recommend that the County implement a policy whereby management of the County’s grants is more centralized and the compiled SEFA is subjected to secondary reviews by those individuals with specific knowledge of the County’s grants and grant policies. The County should consider obtaining additional training as needed, for those involved in the preparation of the SEFA and other Uniform Guidance reporting requirements.

2021-005 Significant Deficiency: Preparation of the Schedule of Expenditures of Federal Awards Prior Year Finding: 2020-006 Condition. A complete schedule of expenditures of federal awards (?SEFA?) was not provided. Criteria or Specific Requirements. The Uniform Guidance requires grantees to prepare a SEFA which properly identifies all federal awards expended and includes the following for each federal award: ? The federal granting agency and program; ? The five-digit Catalog of Federal Domestic Assistance (CFDA) number; ? The grant?s name (as specified by the grant award); ? Any identifying numbers assigned by pass-through entities; and ? The expenditures for each grant on the accrual basis. Possible Effect. Failure to provide a complete and accurate SEFA can lead to a failure to identify the need for an annual financial audit in accordance with the standards outlined in the Uniform Guidance. Additionally, an inaccurate SEFA could lead to an improperly planned and executed single audit. Questioned Costs. None. Context. Substantive procedures revealed additional grant funds that were federally-derived, not included on the SEFA. Recommendation. The appropriate County official should review and revise, as needed, the policies and procedures in place to ensure that all federal grants are properly included in the SEFA. We also recommend that the County implement a policy whereby management of the County?s grants is more centralized and the compiled SEFA is subjected to secondary reviews by those individuals with specific knowledge of the County?s grants and grant policies. The County should consider obtaining additional training as needed, for those involved in the preparation of the SEFA and other Uniform Guidance reporting requirements. Views of Responsible Officials and Corrective Action. See Management?s Responses to Findings and Corrective Action Plan on pages 123-124.

2020-006 Significant Deficiency: Preparation of the Schedule of Expenditures of Federal Awards Condition. A complete schedule of expenditures of federal awards (?SEFA?) was not provided. Criteria or Specific Requirements. The Uniform Guidance requires grantees to prepare a SEFA which properly identifies all federal awards expended and includes the following for each federal award: ? The federal granting agency and program; ? The five-digit Catalog of Federal Domestic Assistance (CFDA) number; ? The grant?s name (as specified by the grant award); ? Any identifying numbers assigned by pass-through entities; and ? The expenditures for each grant on the accrual basis. Possible Effect. Failure to provide a complete and accurate SEFA can lead to a failure to identify the need for an annual financial audit in accordance with the standards outlined in the Uniform Guidance. Additionally, an inaccurate SEFA could lead to an improperly planned and executed single audit. Questioned Costs. None. Context. Substantive procedures revealed additional grant funds that were federally-derived, not included on the SEFA. Recommendation. The appropriate County official should review and revise, as needed, the policies and procedures in place to ensure that all federal grants are properly included in the SEFA. We also recommend that the County implement a policy whereby management of the County?s grants is more centralized and the compiled SEFA is subjected to secondary reviews by those individuals with specific knowledge of the County?s grants and grant policies. The County should consider obtaining additional training as needed, for those involved in the preparation of the SEFA and other Uniform Guidance reporting requirements. Views of Responsible Officials and Corrective Action. See Management?s Responses to Findings and Corrective Action Plan on pages 111-112.