Audit 1099

Criteria or specific requirement (including statutory, regulatory, or other citation): Reporting. The accounts used to record expenditures on the quarterly expenditure reports should match the general ledger accounts where the expenditures are reported. Condition: There were three inconsistencies in the accounts used to record the expenditures in the general ledger vs what was reported on the expenditure reports. Questioned Costs: None, just a classification issue. Context: Tied out all of the expenditure account numbers to the general ledger vs the expenditure reports and noted three inconsistencies. Effect: The expenditure was not recorded/reported consistently between the two reports (G/L vs expenditure report). Cause: The timesheets were coded incorrectly for the work performed. Recommendation: It is recommended that a check of account numbers is done quarterly when the reports are filed to ensure that the account numbers are consistent. Management's response: We will code timesheets correctly and check quarterly.

Criteria or specific requirement (including statutory, regulatory, or other citation): Procurement. The District should follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition: The District did not follow the small purchase method for procurement that is required for purchases made between $10,000 and $250,000. This method requires that price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b). Questioned Costs: None. Context: There was only one purchase over $10,000 made with these grants funds during the fiscal year and the required procurement method was not followed. Effect: The District did not comply with the required procurement standard. Cause: This purchase had to be made quickly so the District used their perferred vendor. Recommendation: We recommend that care is taken to ensure that all the procurement requirements are followed based on the amount of the purchase being made with the federal funds. Management's response: We will follow the procurement standard when not in urgent situations for the product or service we are seeking.

Criteria or specific requirement (including statutory, regulatory, or other citation): Reporting. The accounts used to record expenditures on the quarterly expenditure reports should match the general ledger accounts where the expenditures are reported. Condition: There were three inconsistencies in the accounts used to record the expenditures in the general ledger vs what was reported on the expenditure reports. Questioned Costs: None, just a classification issue. Context: Tied out all of the expenditure account numbers to the general ledger vs the expenditure reports and noted three inconsistencies. Effect: The expenditure was not recorded/reported consistently between the two reports (G/L vs expenditure report). Cause: The timesheets were coded incorrectly for the work performed. Recommendation: It is recommended that a check of account numbers is done quarterly when the reports are filed to ensure that the account numbers are consistent. Management's response: We will code timesheets correctly and check quarterly.

Criteria or specific requirement (including statutory, regulatory, or other citation): Procurement. The District should follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. Condition: The District did not follow the small purchase method for procurement that is required for purchases made between $10,000 and $250,000. This method requires that price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b). Questioned Costs: None. Context: There was only one purchase over $10,000 made with these grants funds during the fiscal year and the required procurement method was not followed. Effect: The District did not comply with the required procurement standard. Cause: This purchase had to be made quickly so the District used their perferred vendor. Recommendation: We recommend that care is taken to ensure that all the procurement requirements are followed based on the amount of the purchase being made with the federal funds. Management's response: We will follow the procurement standard when not in urgent situations for the product or service we are seeking.