COUNTY OF HUERFANO

Finding 2023-003 – Huerfano County - Internal controls over the preparation of the SEFA Criteria: In accordance with 2 CFR Part 200.510(b)(2), the auditee is responsible for preparing a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Part 200.303(a) and 2 CFR Part 200.502. Condition: The County does not have adequate internal controls to ensure the SEFA accurately reports all federal assistance the county receives. Cause: Grant management at the county is decentralized and departments are responsible for providing the required information to the County’s department of finance to facilitate the preparation of the SEFA. The department of finance was not provided accurate federal program expenditures. Effect: The SEFA did not correctly report all Federal expenditures. The Federal government relies on the SEFA information to be reported accurately. In addition, accurate SEFA information is relied upon by the auditors in order to perform the major program determinations utilized to select the Federal programs subject to Single Audit procedures. Questioned Costs: None reported. Repeat Finding: No. Recommendation: We recommend the County implement a countywide system to allow for a more automated system of tracking federal expenditures, that may include updated processes to be developed to set up new organization codes which would require grant managers to provide the required information needed for accurate SEFA preparation. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has implemented new process to ensure accurate preparation of their SEFA’s.