The formulas
- Reconciled = federal revenue in the statements + noncash assistance + timing items + other items
- Unreconciled difference = SEFA total - reconciled
How it works
2 CFR 200.514(b) requires the auditor to determine whether the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole. That opinion rests on reconciling the schedule to the accounting records and the statements.
Common reconciling items are loans and loan guarantees reported on the schedule but carried on the balance sheet, noncash assistance such as donated commodities, and expenditures recognized in a different period than the related revenue. Every remaining difference needs an explanation before the in-relation-to opinion is given.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Why would revenue differ from expenditures for a reimbursement grant?
Revenue follows allowable expenditures, so they usually match. Differences come from timing, disallowed costs and amounts recorded in a different fund or entity.
Where do pass-through awards go?
On the SEFA under the pass-through entity, with the pass-through identifying number. They are reconciled the same way.
What size of difference is acceptable?
None unexplained. Small unexplained differences are still questions about completeness of the schedule.
Sources
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.