You can access the Audit Alert HERE.
Below are some of the major points in the alert:
All units of government that spend federal funds are required to complete a report known as a Schedule of Expenditures of Federal Awards (SEFA) to assist in determining if the governmental unit is subject to the Federal Single Audit Act. The Act requires governmental units that expend $750,000 or more in federal funds during the fiscal year to undergo additional audit requirements.
All federal funds spent during the fiscal year should be reported on the SEFA regardless of when the funds are received.
All CARES Act funding expended during the fiscal year should be reported on the SEFA regardless of whether the funds were passed through a state agency or received directly from a federal agency.
The SEFA should include any CARES Act-related expenditures incurred during the fiscal year for which the local government will be reimbursed by the Department for Local Government (DLG) as well as CARES Act funds that may have been received from the Secretary of State.
CARES Act funds should be tracked separately from other federal funds on the SEFA and the Auditor’s Office recommends including “CARES” in the grant title to identify CARES Act funds.
You should also include any donated items of PPE that came from federal sources as an expenditure on the SEFA.
As always, feel free to reach out to our Legal Team here at KACo if you have any questions
