Audit 303675

2022-001 Finding Federal Agency U. S. Department of Education Passed-through Mississippi Department of Education Assistance Listing Number: AL # 84.425 D Program Title: Elementary and Secondary School Emergency Relief II Compliance Requirement: Allowable Cost Repeat Finding from Prior Audit? No Prior Audit Finding Number: N/A Material Weakness Condition: The district requested reimbursement for pre-award COVID related expenditures which were originally paid out of the general fund in the prior fiscal year but failed to reclassify these expenditures to ESSER II funds. Criteria: 2 CFR § 200.303(a) states that a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under 2 CFR 200.458, an LEA that has not yet received ESSER fund to which it is entitled may use State or local funds to incur allowable cost, and once it receives its ESSER award, reimburse itself for the allowable cost that it incurred before receiving the Federal emergency funds. Cause: The district failed to reclassify pre-award cost in the manner specified by the Mississippi Department of Education once guidance was received instructing district the manner in which to record prior year cost to the ESSER II grant. Effect: Failure to record transactions in the manner prescribed by the Mississippi Department of Education could result in a misstatement of expenditures. An audit adjustment was proposed and made to correct. Recommendation: We recommend the District review its internal control procedures to ensure that internal controls are established and are operating effectively to ensure all costs requested for reimbursement are recorded in the proper grant fund. Views of responsible officials of the auditee: See Auditee’s Corrective Action Plan. Questioned Cost: No known questioned cost.

2022-001 Finding Federal Agency U. S. Department of Education Passed-through Mississippi Department of Education Assistance Listing Number: AL # 84.425 D Program Title: Elementary and Secondary School Emergency Relief II Compliance Requirement: Allowable Cost Repeat Finding from Prior Audit? No Prior Audit Finding Number: N/A Material Weakness Condition: The district requested reimbursement for pre-award COVID related expenditures which were originally paid out of the general fund in the prior fiscal year but failed to reclassify these expenditures to ESSER II funds. Criteria: 2 CFR § 200.303(a) states that a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in Standards for Internal Control in the Federal Government issued by the Comptroller General of the United States or the Internal Control Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under 2 CFR 200.458, an LEA that has not yet received ESSER fund to which it is entitled may use State or local funds to incur allowable cost, and once it receives its ESSER award, reimburse itself for the allowable cost that it incurred before receiving the Federal emergency funds. Cause: The district failed to reclassify pre-award cost in the manner specified by the Mississippi Department of Education once guidance was received instructing district the manner in which to record prior year cost to the ESSER II grant. Effect: Failure to record transactions in the manner prescribed by the Mississippi Department of Education could result in a misstatement of expenditures. An audit adjustment was proposed and made to correct. Recommendation: We recommend the District review its internal control procedures to ensure that internal controls are established and are operating effectively to ensure all costs requested for reimbursement are recorded in the proper grant fund. Views of responsible officials of the auditee: See Auditee’s Corrective Action Plan. Questioned Cost: No known questioned cost.