Understanding SEFA and SIS Reporting for Federal Awards

Introduction Allen Bradley 615-253-2222 allen.bradley@tn.gov June 2021 1

Schedule of Expenditure of Federal Awards (SEFA) Annual report of the expenditure of federal award received directly from the federal government or through a third- party (non-TN state agency). Both financial and/or non-financial assistance is included. Due September 17. June 2021 2

Why do we prepare the SEFA? It is required supplementary information to the Single Audit. 2 CFR 200.510(b) The Auditors use it in conducting the Single Audit. Also see F&A Policy 20. June 2021 3

FY 20 SEFA June 2021 4

SEFA Shell File June 2021 5

Supplementary Information Schedule (SIS) Contains any federal award received through another TN state agency. Required to be submitted by any State agency receiving federal assistance through another TN state agency. Due September 10th. June 2021 6

SIS Shell File June 2021 7

Why do we prepare the SIS? Support preparation of the SEFA: Helps agencies communicate pass-through grant activity to one another. Identify Sub-recipients Used by Financial Oversight. June 2021 8

SEFA or SIS Recipient state agency. Pass-through to state agency. Sub-recipient outside entity. June 2021 9

Report on SEFA or SIS? 84.305 - Education Research, Development and Dissemination Received from the University of Pittsburg. If TN Dept. of Education passed this grant onto TN Dept. of Health what would be the reporting? Dept. of Health Report on SIS. Dept. of Education Still reports on SEFA. Not a sub-recipient for SEFA reporting. June 2020 10

Which Schedule? Report on SEFA or SIS? 84.305 - Education Research, Development and Dissemination Received from the University of Pittsburg. What if Health passes it onto a county school system? Health Report on SIS with Y for sub-recipient. Education Still reports on SEFA, but included the county school system as a sub-recipient. Displayed as a Y on the appropriate SEFA line. June 2020 11

Sub-recipient Reporting Sub-recipient versus Contractor. What s the difference? AGA checklist provides guidance: Sub-recipient: Determines Eligibility Makes decisions. Contractor: Provides goods or Services. Follows the direction of the recipient. June 2021 12

Non-Cash items Items given through a Federal program are included in the SEFA/SIS. Examples: Personal Property. Food. Medical Supplies June 2021 13

COVID Relief Expenditures Retrieved from usatoday.com, All of the COVID-19 stimulus bills, visualized June 2021 14

Wheres COVID George? Retrieved from Simply Stamp June 2021 15

Tracking COVID-19 Relief Funds How do we know if it is related to COVID? Received through one of COVID Relief Acts. Through a specific CFDA. Example 21.019 Coronavirus Relief Fund Any funds received through the CFDA should be marked COVID related. Through pre-existing CFDAs. June 2021 16

Reporting COVID-19 Relief Funds Mixed funding CFDAs may require contacting the granter entity for clarification of funding source. 21.019 Coronavirus Relief Fund Recorded as INTERFED (pass-through) but should be reported on the SEFA. June 2021 17

Questions? Please type your questions into the Chat. June 2021 18

Walkthrough of SEFA Process. Off-slide demonstration Preparing SIS. Preparing SEFA. Reconciliations. Uploading to SDM. June 2021 19

For Supplemental (SIS)- Run query TN_GR06S_SEFA_SUPPL Parameters Business Unit: Begin Accounting Period: End Accounting Period: Fiscal Year: June 2021 20

For SIS Detail- Run query TN_PR101_project_Cost_detail Parameters Business Unit: Accounting Date From: Accounting Date To: Project ID: Fund Code: Account: Dept ID Resource Type June 2021 21

Finding Sub-recipients Meticulous agency records. Internal documentation of sub-recipients Query help Looking at the Vendor Name in AP transactions. If it is Panera Bread or similar you should not need to do the decision process outlined earlier. June 2021 22

For SEFA - Run query TN_GR06_SEFA_EXP Parameters Business Unit: Begin Accounting Period: End Accounting Period: Fiscal Year: June 2021 23

Alternatively for SEFA - Run query TN_GR06_V_SEFA_DETAILS Provides much more information, particularly information useful for researching the sub-recipient information. Parameters PC Bus Unit Fiscal Year From Acctg Date Through Acctg Date Award/Contract Project ID Like June 2021 24

Reconciliation: Reconcile the SEFA and SIS to the GL and Federal Report. There will be a reconciliation template for 2021. Must show the differences between the GL, Grants Module and final SEFA numbers. I will independently run the queries to compare. June 2021 25

Reconciliation The goal of the reconciliation is to explain the differences between the GL module, Projects Module and SEFA/SIS. Quantitative information needs qualitative explanation. Meaning explain your numbers for reconciling items. For Example: The analysis type CGE was used in error on federal activity creating a $200,000 reconciling item. OR Reimbursement of prior year expenditures due to Sub-recipient returning $200,000 of FY20 Funds. June 2021 26

Reconciling items The TN_GR06 Queries only pulls transactions with analysis Types below: ACT GLE GLR PAY SFA YAE Pulls from revenue recognized from expenditures. June 2021 27

Reconciling Items What does this mean for your reconciliation Transactions with wrong analysis type may be reconciling items. Actual GL expenditures may be higher than TN_GR06 amount. Difference needs to be explained on the reconciliation, June 2021 28

Reconciling Items Program Income: Can reduce federal draw on a grant. For Example: Federal Revenue Expenditures. Federal Revenue + Program Income = Expenditures Reimbursement of Prior Year Expenditures: reduces federal draw. Funds expensed in a prior year are returned in the current year. Federal Revenue + Reimbursement of Prior Year Expenditures = Expenditures Offline Accounting: Policy 20 Exception Any grant expenditures tracked outside of projects module. June 2021 29

Policy 20 Exceptions Policy 20 Highlights: All requests for exceptions to this policy shall be submitted in writing annually to the director of Statewide Accounting, Division of Accounts, Department of Finance and Administration, for approval. The letter of approval or denial from the Division of Accounts shall be maintained on file at the requesting entity. Send requests to Michelle Earhart. Sooner is better than later. June 2021 30

Notes on Accruals Sub-recipient reporting. Ensure any sub-recipient amounts accrued are properly included/excluded from the SEFA. Late Accruals or adjustments to Federal activity will require SEFA revision. Even if it is after the SEFA deadline. June 2021 31

Example of a SEFA Formula: SEFA = (Expenditures Program Income Reimbursement of Prior Year Expenditures) + Policy 20 Exception amounts If your agency has a unique formula please ensure that is noted on the reconciliation. June 2021 32

Submitting the SEFA We are continuing the use of Supplementary Data Manager, SDM, in the Hyperion closing system this year for SEFA. What does this mean for the agency? Agency will be responsible for uploading the CSV extract file into SDM and attaching additional documents. Instructions will be provided to uploader. June 2021 33

Questions? Please type your questions into the Chat. June 2021 34