Audit 323033

(3) Federal Award Findings and Questioned Costs: Finding Number: 2023-001 Program: COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Federal Agency Name: Federal Emergency Management Agency Federal Award Number: N/A Federal Award Year: 2023 Federal Assistance Listing Number: 97.036 Compliance Requirement: Criteria Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Subpart D, Section 200.303), the nonfederal entity must establish and maintain effective internal controls 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. Further, Subpart E Section 200.403 states that costs must be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for. Conditions Found In one of 25 selections for testwork over allowability of costs, expenditures related to inventory were submitted for reimbursement to FEMA at an incorrect value. Further, as the expenditures were not properly reviewed, this is an instance of the District’s internal control not operating as designed. Cause The District does not have adequate processes and controls in place to ensure that all inventory expenditures submitted for reimbursement by FEMA under the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program are priced accurately. Effect Without effective controls in place, expenditures could be reimbursed by the program that are considered unallowed or are not at appropriate values, resulting in non-compliance with program requirements. Questioned Costs $21,437, representing the known amount of expenditures incorrectly reimbursed by COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program. Statistical Sample The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This finding is not a repeat finding in the immediate prior audit. Recommendation We recommend that management strengthen processes and controls in place to ensure all inventory expenditures submitted to FEMA for reimbursement under the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program are appropriately reviewed prior to submission to ensure they are allowable and priced accurately. Views of Responsible Officials The District agrees with the finding and accepts the recommendation.

(3) Federal Award Findings and Questioned Costs: Finding Number: 2023-001 Program: COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Federal Agency Name: Federal Emergency Management Agency Federal Award Number: N/A Federal Award Year: 2023 Federal Assistance Listing Number: 97.036 Compliance Requirement: Criteria Per Title 2, U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Subpart D, Section 200.303), the nonfederal entity must establish and maintain effective internal controls 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. Further, Subpart E Section 200.403 states that costs must be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for. Conditions Found In one of 25 selections for testwork over allowability of costs, expenditures related to inventory were submitted for reimbursement to FEMA at an incorrect value. Further, as the expenditures were not properly reviewed, this is an instance of the District’s internal control not operating as designed. Cause The District does not have adequate processes and controls in place to ensure that all inventory expenditures submitted for reimbursement by FEMA under the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program are priced accurately. Effect Without effective controls in place, expenditures could be reimbursed by the program that are considered unallowed or are not at appropriate values, resulting in non-compliance with program requirements. Questioned Costs $21,437, representing the known amount of expenditures incorrectly reimbursed by COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program. Statistical Sample The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This finding is not a repeat finding in the immediate prior audit. Recommendation We recommend that management strengthen processes and controls in place to ensure all inventory expenditures submitted to FEMA for reimbursement under the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program are appropriately reviewed prior to submission to ensure they are allowable and priced accurately. Views of Responsible Officials The District agrees with the finding and accepts the recommendation.