Single Audit - Schedule of Expenditures of Federal Awards (SEFA) Preparation
Preparing the Schedule of Expenditures of Federal Awards (SEFA) required by 2 CFR Part 200 for governments expending $750,000 or more in federal awards, listing all programs by CFDA/ALN number.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Federal Program Expenditures - CDBG (ALN 14.218) | SEFA Disclosure | 485,000.00 | - |
| Federal Program Expenditures - CARES Act ESSER (ALN 84.425) | SEFA Disclosure | 2,200,000.00 | - |
| Federal Program Expenditures - Highway Planning (ALN 20.205) | SEFA Disclosure | 4,200,000.00 | - |
| Total Federal Expenditures - Single Audit Threshold | SEFA Total | 6,885,000.00 | - |
💡 Accountant's Note
The SEFA is a supplementary schedule to the audited financial statements required for all governments (and nonprofits) that spend $750,000+ in federal funds in a fiscal year. It must list every federal award (grant, loan, subsidy, insurance, direct payment) by program name, ALN (formerly CFDA) number, federal grantor, pass-through grantor (if applicable), total expenditures, and any cluster membership. The SEFA determines which programs are 'major' and must be individually audited. Loan balances outstanding must also be included.
Practitioner & Systems Framework
💻 ERP Architecture
The SEFA requires a crosswalk from the general ledger to federal program codes. Implement project/grant coding in the ERP that captures the ALN number for every federal expenditure. Reconcile the SEFA total to the general ledger at year-end — unexplained differences between SEFA and ledger are a material finding.
⚠️ Audit Flags
The Single Audit auditor determines major programs based on SEFA expenditures (using the risk-based approach in 2 CFR Part 200.518). Programs representing more than 25% of federal expenditures (Type A programs) receive heightened scrutiny. Missing programs from the SEFA is a reportable condition. The auditor reports on both financial statements AND federal program compliance.
📄 Required Documentation
Grant management system report by ALN number, grant award agreements for all programs, loan balance documentation, pass-through grant sub-recipient agreements, SEFA reconciliation to general ledger, prior year SEFA for comparison.
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