In addition to your many end of fiscal year document requirements, you’re also responsible for the Schedule of Expenditures of Federal Awards (SEFA). Below is a list of items you’ll need to prepare the SEFA under Uniform Guidance as well as some helpful tips to ensure the information is complete and accurate.
At a minimum the SEFA must include:
- Total of federal awards expended for the fiscal year including:
- Direct and indirect grant expenditures
- Disbursement of grant funds to pass-through entities
- Use of loan proceeds under loan and loan guarantee programs
- Receipt of federal property, including some surplus property
- Receipt or use of program income
- Receipt of non-cash assistance such as food commodities and vaccines
- Disbursement of amounts entitling a non-federal entity to an interest subsidy
- Insurance contracts in force during the period under audit
- List individual Federal programs by Federal agency
- Provide the CFDA number, and name of each Federal program
- As a best practice the CFDA and name should be verified for accuracy using a reliable source such as org
- For a cluster of programs, the SEFA must:
- Provide the cluster name
- List individual Federal programs within the cluster
- Provide the applicable Federal agency name
- For R&D programs, show total Federal awards expended by individual Federal award or Federal agency and major agency subdivision
- Provide the total of the cluster
- Provide the name of the pass-through entity and identifying number assigned, for Federal awards received as a subrecipient
Gathering this information can be time consuming, however, the accuracy and completeness of your SEFA is imperative as the SEFA is used by your external auditors to determine the single audit programs to test. If during the audit the SEFA is found to be incomplete and/or the federal awards expended is inaccurate, the single audit programs tested may not meet the minimum testing requirement under Uniform Guidance and additional testing may need to be performed. Since you’re responsible for the preparation of the SEFA, any issues found related to the completeness and/or accuracy of the SEFA may be considered a weakness in internal control over compliance.
Be sure to consult your Henry and Horne advisors should you have any questions.
Aaron Funk, CPA