Preparing the SEFA AMSSA Regional Meeting Presentation by Lisa 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 # For 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 clusters pliance/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, 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 Subrecipients Program Name Community Development Block Grants - Entitlement Grants Cluster Community Development Block Grants - Entitlement Grants$4,506, Community Development Block Grants - Entitlement Grants - ARRA81,709 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)   OMB Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations  _revised_2007.pdf _revised_2007.pdf  OMB Circular A-133 Compliance Supplement 2012  PLEMENT_ PLEMENT_2012  Updated Schedule of Expenditures of Federal Awards (SEFA) Practice Aids (look for link to auditee practice aids)  urces/AuditPracticeToolsAids/Pages/Single%20Audit%20Practice%20Ai ds.aspx urces/AuditPracticeToolsAids/Pages/Single%20Audit%20Practice%20Ai ds.aspx Resources

Questions?