Audit 326712

2022-003 Supporting Documents Relating to Elementary and Secondary School Emergency Relief State Code 50000 Federal Compliance Program Name: Elementary and Secondary School Emergency Relief (ESSER, ESSER I, ESSER II, ESSER III, and Learning Loss) Fund Federal Financial Assistance Listing Numbers: 84.425, 84.425C and 84.425U Federal Agency: U.S Department of Education Compliance Requirements: A. Activities Allowed or Unallowed; B. Allowable Cost Principles; F. Equipment/ Real Property Management Criteria A. Activities Allowed or Unallowed Funds may be used for a wide range of activities to address needs arising from the coronavirus pandemic as listed in Section 18003(d) of the CARES Act. B. Allowable Cost Principles 2 CRF Section 200.430(i) requires the LEA to maintain records generally maintained for salaries and wages. F. Equipment/ Real Property/ Management For capital equipment or improvements to land, buildings, or equipment that were purchased with grant funds, the governor or State Educational Agency (SEA), as the pass-through entity, must provide prior approval to subrecipients. Condition Documentation to support the propriety of expenditures (e.g. date, purpose, amount, classification, approval, etc.) was unavailable or nonexistent for planned audit procedures related to internal control testing and substantive testing of compliance to be performed. Effect District staff was unable to provide sufficient and appropriate audit evidence for all expenses included in the audit sample. Cause An effective disbursement system to ensure compliance with the requirements of the program has either not been established or is not working as designed. Questioned Cost Unsupported expenses totaled $27,090. Repeat Finding This is not a repeat finding. Recommendation Establish a disbursement process that accounts for all expenditures and provides a clear audit trail of compliance with specific federal program compliance requirements exists. District Response and Action Plan We already have revised procedures for the finding. We now have more than 1 person responsible for the filing of the invoices and the purchase orders, so nothing gets misplaced again. We realized how important this is and will not allow it to happen again. The Business Manager and District Secretary are overseeing accounts payable at this time and going forward. The Superintendent / Principal is also here to help oversee the District Office and make sure that things are properly filed.

2022-003 Supporting Documents Relating to Elementary and Secondary School Emergency Relief State Code 50000 Federal Compliance Program Name: Elementary and Secondary School Emergency Relief (ESSER, ESSER I, ESSER II, ESSER III, and Learning Loss) Fund Federal Financial Assistance Listing Numbers: 84.425, 84.425C and 84.425U Federal Agency: U.S Department of Education Compliance Requirements: A. Activities Allowed or Unallowed; B. Allowable Cost Principles; F. Equipment/ Real Property Management Criteria A. Activities Allowed or Unallowed Funds may be used for a wide range of activities to address needs arising from the coronavirus pandemic as listed in Section 18003(d) of the CARES Act. B. Allowable Cost Principles 2 CRF Section 200.430(i) requires the LEA to maintain records generally maintained for salaries and wages. F. Equipment/ Real Property/ Management For capital equipment or improvements to land, buildings, or equipment that were purchased with grant funds, the governor or State Educational Agency (SEA), as the pass-through entity, must provide prior approval to subrecipients. Condition Documentation to support the propriety of expenditures (e.g. date, purpose, amount, classification, approval, etc.) was unavailable or nonexistent for planned audit procedures related to internal control testing and substantive testing of compliance to be performed. Effect District staff was unable to provide sufficient and appropriate audit evidence for all expenses included in the audit sample. Cause An effective disbursement system to ensure compliance with the requirements of the program has either not been established or is not working as designed. Questioned Cost Unsupported expenses totaled $27,090. Repeat Finding This is not a repeat finding. Recommendation Establish a disbursement process that accounts for all expenditures and provides a clear audit trail of compliance with specific federal program compliance requirements exists. District Response and Action Plan We already have revised procedures for the finding. We now have more than 1 person responsible for the filing of the invoices and the purchase orders, so nothing gets misplaced again. We realized how important this is and will not allow it to happen again. The Business Manager and District Secretary are overseeing accounts payable at this time and going forward. The Superintendent / Principal is also here to help oversee the District Office and make sure that things are properly filed.