NOT2421. SEFA vs. GAAP: Why they may not be the same

Ensuring that the SEFA is accurate and prepared in accordance with Uniform Guidance requirements is a crucial part of auditee and auditor responsibility. An inaccurate SEFA can lead to an incorrect conclusion as to whether a Single Audit is required. I may also lead to an incorrect major program determination by the auditor. This session will cover a short refresher on the basics related to SEFA presentation, as well as unique situations that can result from program-specific funding. We will walk through common examples, and explore nuances that have resulted from COVID funding and federal agency conclusions that are newer in recent years.

Learning Objectives:

• Identify potential areas where reporting expenses on the SEFA may vary from current period revenue recognition.
• Indicate appropriateness/adequacy of auditee controls in place related to SEFA preparation.