What does the acronym SEFA mean and what are management’s responsibilities for it? The SEFA is the acronym for “Schedule of Expenditures of Federal Awards”. This schedule is prepared when a single audit is required under Federal guidelines and lists all of the Federal expenditures for the year end along with other information that must be reported.
Knowing what a SEFA is and what is required to be included in it is important to entities being audited because if any of the components are missing or overlooked the auditor may have to report a compliance violation and/or an internal control matter. So if you prefer not being the recipient of audit findings for non-compliance or internal control matters, this article will help you avoid them.
If you have experience working with Federal awards or grants, then you should be familiar with the Uniform Guidance or the UG which is the Federal law that must be complied with when a federal award is received. The UG can be found in the Federal Register at 2 CFR Chapter 1 and Chapter 2, Parts 200 et.al. It specifies in section 200.510(b) that the auditee (management) must prepare a schedule of expenditures of Federal awards and specifies what it should include. Section 200.502 defines what is meant by a Federal award expended to be included in the SEFA. A SEFA must be prepared when $750,000 or more in Federal awards have been expended. The auditor can assist with preparing the SEFA as a “non-audit” service if independence safeguards are identified under Government Auditing Standards, but it is management’s responsibility to make sure all the required information is included.
Following are the elements that are required to be reported and included on the SEFA:
UG Section 200.502 describes the basis for determining Federal awards expended which includes an activity that requires the non-Federal entity to comply with Federal statues, regulations and the terms and conditions listed in the Federal award. These may include the following:
The timing of when a Federal expenditure is required to be reported on the SEFA may be specified in the Federal compliance supplement of the federal program. One example of a specific determination of when to report a Federal award is in the Disaster Assistance Grants - Public Assistance (Presidentially Declared Disasters) CFDA # 97.036 from the Department of Homeland Security. This grant allows expenditures to be reported on the SEFA only when both of the following occur:
For more information, following is a link to the Uniform Guidance and a link to the compliance supplements for Federal awards: