THE TETON REGIONAL LAND TRUST INCNon-Profit

2021-003 Allowable Activities-Schedule of Expenditures of Federal Awards (SEFA) Preparation Federal Program Information: Funding agency: Department of Agrculture and Department of Interior Title: Agricultural Conservation Easement Program, North American Wetlands Conservation Council Grant, and State Wildlife Grants AL number: 10.931, 15.U01, and 15.U02 Award year and number: 2021 Criteria or Specific Requirement: In accordance with the Uniform Guidance (2 CFR Section 200.510(b)), the auditee should identify all federal awards received and prepare a SEFA for the period under audit. The information contained in the SEFA shall be derived from, and relate directly to, the underlying accounting and other records used to prepare the financial statements. Condition: The Organization did not recognize federal funding received and spent during the fiscal year and did not identify the need for a Uniform Guidance audit as a result. Context: The Organization occasionally receives funding from federal and state agencies to facilitate their purpose and programs. Most of this funding is below the threshold to require a Uniform Guidance audit. In 2021, federal agencies provided $1.29 million in funding to facilitate the purchase of a conservation easements. These funds were not recorded, and no schedule of federal expenditures was created with this and other federal funding sources. Questioned Costs: None Effect: The lack of SEFA creation and tracking caused the Organization to miss the requirement for a Uniform Guidance audit and under report revenues and expenditures in connection with these federal awards. In addition, the lack of tracking could cause issues with the proper identification and testing of major programs under Uniform Guidance requirements. Cause: The Organization does not have a process in place to identify and track these types of spending. Repeat: No Auditor's Recommendation: The Organization should perform timely close out procedures on grant funds to help ensure accurate reporting of federal expenditures in the SEFA report, and proper tracking in their financial software or other methods. View of Responsible Officials: We were not originally aware of the need to reflect grant funds that went directly to others in our internal financial records. These grants were appropriately monitored and tracked for compliance and other matters. We plan to now include all funds where we are the recipient (including on-behalf or in-kind) as appropriate in our revenues and reflect any related expenditures. We will also identify all federal awards and include in our SEFA on an annual basis.