Preparing the
SEFA
AMSSA Regional Meeting
Presentation by
Lisa Young, CPA
Office of the State Auditor
Topics Covered:
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What is the SEFA?
Starting with revenues
Getting to expenditures
Putting it together
Note disclosure
What is the SEFA?
 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
Context of the SEFA - compliance
 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
First things first: REVENUE
 What federal revenue are you receiving?
 Identify it
 Intergovernmental revenue could be a grant or could be
a charge for service
 DHS Bulletin #12-32-02
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?
Complete list of revenues and
needed information?
 Have you properly identified federal awards from passthrough 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).
Getting to Expenditures
 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.)
Putting it all together
 Use the catalog of federal domestic assistance as the
source for the name of the grant
 CFDA.gov
 Correctly identify clusters
http://www.whitehouse.gov/sites/default/files/omb/assets/OMB/circulars/a133_com
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 passthrough entity and identifying number assigned by the pass-through
entity shall be included
Schedule of Expenditures of Federal Awards
Note disclosures
 Notes to the SEFA should include
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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
Notes to the SEFA
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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
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4. Reconciliation to Schedule of Intergovernmental Revenue
Federal grant revenue per Schedule of Intergovernmental Revenue
$
Grants received more than 60 days after year-end, deferred in 2011
Medical Assistance Program
Grants deferred in 2010, recognized as revenue in 2011
Child Care Mandatory and Matching Funds of the Child Care and Development Fund
Medical Assistance Program
Expenditures Per Schedule of Expenditures of Federal Awards
965,009
10,696
(664)
(126)
$
974,915
Notes to the SEFA
5. Subrecipients
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Of the expenditures presented in the schedule, NAME OF County provided federal awards to subrecipients
as follows:
CFDA Number
Program Name
Amount
Provided to
Subrecipients
Community Development Block Grants - Entitlement
Grants Cluster
14.218
14.253
Community Development Block Grants - Entitlement
Grants
$
4,506,381
Community Development Block Grants - Entitlement
Grants - ARRA
Total
81,709
$
4,588,090
Notes to the SEFA
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6. American Recovery and Reinvestment Act
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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.
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7. Clusters
Clusters of programs are groupings of closely related programs that share common compliance
requirements. Total expenditures by cluster are:
Temporary Assistance for Needy Families Cluster
Child Care and Development Cluster
$ 53,065
5,115
Resources
 Catalog of Federal Domestic Assistance (CFDA)
 www.cfda.gov
 OMB Circular A-133, Audits of States, Local Governments, and NonProfit 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_COMPLIANCE_SUP
PLEMENT_2012
 Updated Schedule of Expenditures of Federal Awards (SEFA)
Practice Aids (look for link to auditee practice aids)
 http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Reso
urces/AuditPracticeToolsAids/Pages/Single%20Audit%20Practice%20Ai
ds.aspx
Questions?