Preparing theSEFA

AMSSA Regional MeetingPresentation byLisa Young, CPA

Office of the State Auditor

What is the SEFA? Starting with revenues Getting to expenditures Putting it together Note disclosure

Topics Covered:

Schedule of Expenditures of Federal Awards

Defined in OMB Circular A-133 Defined in OMB Circular A-133 _.310(b)

Auditee’s responsibility _.300(d) Auditor’s responsibility _.505(a)

Considered Supplementary information

What is the SEFA?

SEFA serves as the primary basis for major program determination – thus making the accuracy & completeness of the SEFA a critical factor

Internal control over compliance procedures require the auditor to assess the auditee’s controls over the accuracy and completeness of the expenditure amounts & accuracy of CFDA numbers

Compliance procedures should be performed to determine whether the SEFA is complete, accurate and contains all required elements

Context of the SEFA - compliance

What federal revenue are you receiving? Identify it Intergovernmental revenue could be a grant or

could be a charge for service DHS Bulletin #12-32-02For funds that come through DHS, look up the invoice code on the bulletin (Blocks one & two). If the Payment Code column indicates ‘S’ then its federal money.

First things first: REVENUE

Extra bonus feature MA federal MMIS money doesn’t fit the above

description. The result? You are going to need to be cognizant of this in order to correctly identify it. DD screening, CTC, Access, PA SARR

First things first: REVENUE

What federal revenue are you receiving? Identify it (Continued)

What does the remittance advice say? Does it have a fund number (300?) does it have a CFDA

number? Does it refer to a contract, in which case what does the contract say?

Loans and loan guarantees, endowment funds, noncash assistance

Accruals Does it look like a duck?

If you don’t know if something is federal, ask. Get the CFDA number.

First things first: REVENUE

What federal revenue are you receiving? (Continued) Track it

How are you keeping track of the federal revenue you receive? At a minimum, the information from the remittance advice

needs to be entered into the general ledger ARRA? Can we add the CFDA number? Potential problems:

Transferring the funds after receipted in the general ledger. Clearing/holding accounts

First things first: REVENUE

What federal revenue are you receiving? Track it (Continued)

Extra bonus feature Where did the money come from?

Disclosure of the entity from which federal money was received is required on the SEFA. Direct from the federal government? From the MN department of Human Services? From your friendly neighboring county? From a non-profit or other entity?

First things first: REVENUE

Have you properly identified federal awards from pass-through entities and the federal portion of multi-funded awards?

Have you properly included direct and indirect costs, and excluded cost sharing or matching amounts?

Have you appropriately measured certain specific items, such as loans and loan guarantees, endowment funds, and noncash assistance, as provided in A-133, section 205(b) through (j).

Complete list of revenues and needed information?

Do your federal revenues = your federal expenditures? Maybe, but maybe not… Make sure you understand how your grants

work. Do you ever get advances? Or do you get money

before you completely spend the money? Reimbursement grant? If yes, do you get

reimbursed on a timely basis?

Getting to Expenditures

Do your federal revenues = your federal expenditures? Maybe, but maybe not… (Continued) Deferred revenue unavailable:

If you don’t receive grant funds during the period in which they can be recognized as available and measurable in the fund, there isn’t any revenue in the current period.

Expenditures? Yes. This will be an adjustment to the revenues to prepare the

SEFA (track this!). And it will be an adjustment next year too.

Unearned revenue? Nope not the same circumstance. (But track it! And is it being reported as unearned properly?)

Getting to Expenditures

Do your federal revenues = your federal expenditures? Maybe, but maybe not… Did you give funds to another entity?

Expenditure in the fund, expenditure on the SEFA, no problem! But wait (track it! Required disclosure.)

Getting to Expenditures

Use the catalog of federal domestic assistance as the source for the name of the grant CFDA.gov

Correctly identify clustershttp://www.whitehouse.gov/sites/default/files/omb/assets/OMB/circulars/a133_compliance/2012/pt5.pdf

Putting it all together

Once all expenditures are identified, by CFDA number go at it! List individual federal programs by Federal agency.

Use CFDA.gov as a resource.

For Federal programs included in a cluster of programs, list individual Federal programs within a cluster of programs.

For Federal awards received as a subrecipient, the name of the pass-through entity and identifying number assigned by the pass-through entity shall be included

Putting it all together

Schedule of Expenditures of Federal Awards

Notes to the SEFA should include Describe the significant accounting policies used Reporting entity Basis of presentation Reconciliation to the Schedule of Intergovernmental

Revenue Subrecepients American Recover and Reinvestment Act Clusters

Note disclosures

1. Reporting Entity The Schedule of Expenditures of Federal Awards presents the activities of federal award

programs expended by NAME OF County. The County’s reporting entity is defined in Note 1 to the financial statements

2. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant

activity of NAME OF County under programs of the federal government for the year ended December 31, 2011. The information in this schedule is presented in accordance with the requirements of Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non‑Profit Organizations. Because the schedule presents only a selected portion of the operations of NAME OF County, it is not intended to and does not present the financial position, changes in net assets, or cash flows of NAME OF County.

3. Summary of Significant Accounting Policies  Expenditures reported on the schedule are reported on the modified accrual basis of

accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through grant numbers were not assigned by the pass-through agencies.

Notes to the SEFA

4. Reconciliation to Schedule of Intergovernmental Revenue

Notes to the SEFA

Federal grant revenue per Schedule of Intergovernmental Revenue $ 965,009 

Grants received more than 60 days after year-end, deferred in 2011     Medical Assistance Program   10,696 Grants deferred in 2010, recognized as revenue in 2011     Child Care Mandatory and Matching Funds of the Child Care and Development Fund

  (664)

Medical Assistance Program   (126)      Expenditures Per Schedule of Expenditures of Federal Awards $ 974,915 

5. Subrecipients  Of the expenditures presented in the schedule, NAME OF County provided federal awards

to subrecipients as follows:

Notes to the SEFA

CFDA Number

Amount Provided to Subrecipien

tsProgram Name

 

Community Development Block Grants - Entitlement

Grants Cluster

14.218 Community Development Block Grants - Entitlement

Grants $ 4,506,381

14.253 Community Development Block Grants - Entitlement

Grants - ARRA 81,709

   

Total $ 4,588,090

6. American Recovery and Reinvestment Act  The American Recovery and Reinvestment Act of 2009 (ARRA) requires recipients to

clearly distinguish ARRA funds from non-ARRA funding. In the schedule, ARRA funds are denoted by the addition of ARRA to the program name.

7. Clusters Clusters of programs are groupings of closely related programs that share common

compliance requirements. Total expenditures by cluster are:

Notes to the SEFA

Temporary Assistance for Needy Families Cluster

$ 53,065

Child Care and Development Cluster   5,115

Catalog of Federal Domestic Assistance (CFDA) www.cfda.gov

OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations http://www.whitehouse.gov/sites/default/files/omb/assets/

a133/a133_revised_2007.pdf

OMB Circular A-133 Compliance Supplement 2012 http://www.whitehouse.gov/omb/circulars/A133_COMPLIA

NCE_SUPPLEMENT_2012 Updated Schedule of Expenditures of Federal Awards

(SEFA) Practice Aids (look for link to auditee practice aids) http://www.aicpa.org/InterestAreas/GovernmentalAuditQu

ality/Resources/AuditPracticeToolsAids/Pages/Single%20Audit%20Practice%20Aids.aspx

Resources

Questions?