Audit 330390

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.

Accounts payable testing and internal controls. Programs: Special Education Cluster, ALN #84.027; 84.027X; 84.173; 84.173X Title I grants to local educational agencies, ALN #84.010 COVID-19 – Elementary & Secondary School Emergency Relief I and II, ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief III ARP (ESSER) ALN #84.425U Compliance Requirement: Allowable Costs/Cost Principles Repeat Finding: None Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-one (41) invoices, we noted the following exceptions: 1. Nineteen (19) Invoices were not initialed and dated when received by the district. Auditor could not determine if invoices were paid timely based on the 45 day payment requirement of the state of when invoices are received. One invoice was paid late based on the invoice date. 2. Fifteen (15) instances where the invoices were not cancelled (marked paid) 3. Six (6) instances of no indication, signature and/or dated by the employee, of receipt of goods or services. 4. One (1) instance where the purchase order was dated after the invoice date. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records. Response: Please refer to the Auditee’s Corrective Action Plan beginning on page 83.