High Plains Regional Education Cooperative No. 3Local Government

2021-001 Preparation of Schedule of Expenditures and Federal Awards (Significant Deficiency) Federal program information: Funding agency All Programs Title: All Programs Assistance Listing number: All Programs Compliance Requirement Reporting Award Period: July 1, 2020 to June 30, 2021 Condition: The Schedule of Expenditures of Federal Awards was not completed with accurate amounts and Assistance Listing numbers at the time of the audit. Criteria: OMB Uniform Guidance requires that the REC identify all federal awards expended on the schedule of expenditures of federal awards. The Circular also requires award identification to include, as applicable, the Assistance Listing title and number, the award number and years, the name of the federal agency, and the name of any applicable pass-through entities. Questioned Costs: None. Cause: The REC has not spent over $750,000 in prior years and therefore have not had to put compile the required elements of a Schedule of Expenditures of Federal Awards and it wasn?t part of their year-end closing process nor was it needed until the current fiscal year. Effect: The REC is in violation of the Uniform Guidance requirements. Auditor?s Recommendations: We recommend that the REC implement a system to ensure that items needed to prepare the SEFA be done in the closing process so that when the audit starts the SEFA is ready to be audited. Agency?s Response: HPREC is now aware of the 0MB Uniform Guidance requirements regarding the identification of all federal award expenses and reporting on the Schedule of Expenditures of Federal Awards (SEFA). It is our intent to identify all federal awards at onset, begin the process of preparing documentation that includes the Assistance Listing title and number, the award number and years, tl1e name of the federal agency, and the name of any applicable pass-through entities. We will ensure that the required Schedule of Expenditures of Federal Awards is complete at year-end during our closing process, prior to the audit preparation. It will be the responsibility of the Chief Procurement Officer Brandon Hightree, with the assistance of the Business Manager Lisa Gonzales, to complete the forms needed to be in compliance.