Single Audit - Get Off to a Good Start with an Error Free SEFA

SEFA Errors and the Single Audit

The Uniform Guidance (2 CFR Chapter 1, Chapter II, Part 200, et al. Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards) is the standard that both Auditors and Auditees must follow when a Single Audit is performed.

If your organization must have a Single Audit, the first step is to develop the Schedule of Expenditures of Federal Awards (SEFA), which is your responsibility. In certain cases, Maher Duessel can be hired to help with the non-audit services of drafting the SEFA. There have been numerous errors noted by Peer Reviewers and Inspector General auditors connected to the SEFA. Many of these errors are based on new requirements for the SEFA that the Uniform Guidance put into place. If these errors can be identified sooner or prevented in the first place, the Single Audit reporting will proceed more smoothly. A clean error free SEFA will help to ensure that the Single Audit is in compliance with the Uniform Guidance. Errors associated with the SEFA can lead to an audit having to be reissued.

Common SEFA Errors

• Incorrect amounts, estimated amounts, or incomplete reporting on the SEFA can lead to inaccuracies in Major Program Determination. These inaccuracies can lead to Maher Duessel having to go back and audit another major program because the A/B threshold has changed, or a final adjustment has increased the program total to turn a B program into an A program.
• The SEFA must have cluster names and cluster totals. There are numerous clusters noted in the Compliance Supplement. There are cases where failure to identify a cluster can lead to a missed major program.
• In some cases, if the SEFA had only one program or the program was very small, the cluster name and total is missing.
• Failure to include on the face of the SEFA the amount passed onto sub-recipients. (Under the A-133 requirements, this was permitted to be a footnote.)
• Failure to include in the footnote to the SEFA whether or not the non-federal entity elected to use the 10% deminimis cost rate
• Failure to include the ending balance of a loan in the footnote (The Uniform Guidance has clarified that the beginning balance goes on the SEFA.)
• Failure to place non-cash awards on the face of the SEFA. (Under the A-133 guidance, these could be included in the footnote presentation.)

How Maher Duessel Is Helping to Ensure Compliance

At Maher Duessel we have enhanced our review process to
identify missing or inaccurate clusters.
We will continue our robust internal review to ensure the required
elements of the SEFA are presented. We also require our auditors, before issuing a
report final, to redo their Major Program Determination using the numbers in
the final SEFA to ensure proper selection of the major program.