Audit 3344

Finding 2022-007 – Internal Control Over Credit Card Expenditures for Allowable Costs/Activities (Repeat Finding: 2021-008, 2020-008) Material Weakness AL Number: 84.041 Impact Aid Condition: During our testing of internal controls over credit card expenditures we reviewed 27 transactions, noting there was no supporting documentation for 8 transactions. No additional documentation was present to show that approval was obtained through other means, such as by email, verbally or follow-up signature approval from the program director. The sampling was not a statistically valid sample. Questioned Costs: None. Criteria: Internal controls should be in place that provide reasonable assurance that all credit card transactions are reviewed and approved before payments are made and reports generated. Credit card usage should be limited to authorized staff for authorized purposes. No one individual should handle a transaction from its inception to its completion. Cause: Inattention to the procedures already in place to ensure that all transactions are properly authorized by appropriate personnel signing approvals before payment is issued may have led to this finding. Effect: Inadequate internal controls over credit card usage could adversely affect the School District’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the School District strengthens internal control policies and procedures over credit card usage and employees indicate their review and approval for all transactions to ensure they are properly authorized. Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-008 – Reporting (Compliance; Internal Control Over Compliance) Significant Deficiency AL Number: 84.041 Impact Aid AL Number: 84.425 Education Stabilization Fund Condition: The School District did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of March 31, 2023. Questioned Costs: None. Criteria: 2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds within the calendar year to submit a data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the end of the audit period. Cause: During FY 2020-21 and 2021-22 the School District employed multiple Business Managers. This affected providing documentation in a timely manner. Effect: Late filing of the data collection form results in noncompliance with requirements of Uniform Guidance which could lead to sanctions by funding agencies. Recommendation: We recommend the School District become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance. Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-006 – Internal Control Over Disbursements for Allowable Costs/Activities (Repeat Finding: 2021-007, 2020-007) Material Weakness AL Number: 84.425 Education Stabilization Fund Condition: During our testing of internal controls over nonpayroll disbursements we reviewed 10 transactions, noting there was no supporting documentation for 2 transactions. No additional documentation was present to show that approval was obtained through other means, such as by email, verbally or follow-up signature approval from the program director. The sampling was not a statistically valid sample. Questioned Costs: None. Criteria: Internal controls should be in place that provide reasonable assurance that all financial transactions are reviewed and approved before payments are made and reports generated. No one individual should handle a transaction from its inception to its completion. Cause: Inattention to the procedures already in place to ensure that all transactions are properly authorized by appropriate personnel signing approvals before payment is issued may have led to this finding. Effect: Inadequate internal controls over disbursements could adversely affect the School District’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the School District strengthen its internal control policies and procedures over expenditures and employees indicate their review and approval for all transactions to ensure they are properly authorized.Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-008 – Reporting (Compliance; Internal Control Over Compliance) Significant Deficiency AL Number: 84.041 Impact Aid AL Number: 84.425 Education Stabilization Fund Condition: The School District did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of March 31, 2023. Questioned Costs: None. Criteria: 2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds within the calendar year to submit a data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the end of the audit period. Cause: During FY 2020-21 and 2021-22 the School District employed multiple Business Managers. This affected providing documentation in a timely manner. Effect: Late filing of the data collection form results in noncompliance with requirements of Uniform Guidance which could lead to sanctions by funding agencies. Recommendation: We recommend the School District become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance. Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-006 – Internal Control Over Disbursements for Allowable Costs/Activities (Repeat Finding: 2021-007, 2020-007) Material Weakness AL Number: 84.425 Education Stabilization Fund Condition: During our testing of internal controls over nonpayroll disbursements we reviewed 10 transactions, noting there was no supporting documentation for 2 transactions. No additional documentation was present to show that approval was obtained through other means, such as by email, verbally or follow-up signature approval from the program director. The sampling was not a statistically valid sample. Questioned Costs: None. Criteria: Internal controls should be in place that provide reasonable assurance that all financial transactions are reviewed and approved before payments are made and reports generated. No one individual should handle a transaction from its inception to its completion. Cause: Inattention to the procedures already in place to ensure that all transactions are properly authorized by appropriate personnel signing approvals before payment is issued may have led to this finding. Effect: Inadequate internal controls over disbursements could adversely affect the School District’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the School District strengthen its internal control policies and procedures over expenditures and employees indicate their review and approval for all transactions to ensure they are properly authorized.Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-008 – Reporting (Compliance; Internal Control Over Compliance) Significant Deficiency AL Number: 84.041 Impact Aid AL Number: 84.425 Education Stabilization Fund Condition: The School District did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of March 31, 2023. Questioned Costs: None. Criteria: 2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds within the calendar year to submit a data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the end of the audit period. Cause: During FY 2020-21 and 2021-22 the School District employed multiple Business Managers. This affected providing documentation in a timely manner. Effect: Late filing of the data collection form results in noncompliance with requirements of Uniform Guidance which could lead to sanctions by funding agencies. Recommendation: We recommend the School District become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance. Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-007 – Internal Control Over Credit Card Expenditures for Allowable Costs/Activities (Repeat Finding: 2021-008, 2020-008) Material Weakness AL Number: 84.041 Impact Aid Condition: During our testing of internal controls over credit card expenditures we reviewed 27 transactions, noting there was no supporting documentation for 8 transactions. No additional documentation was present to show that approval was obtained through other means, such as by email, verbally or follow-up signature approval from the program director. The sampling was not a statistically valid sample. Questioned Costs: None. Criteria: Internal controls should be in place that provide reasonable assurance that all credit card transactions are reviewed and approved before payments are made and reports generated. Credit card usage should be limited to authorized staff for authorized purposes. No one individual should handle a transaction from its inception to its completion. Cause: Inattention to the procedures already in place to ensure that all transactions are properly authorized by appropriate personnel signing approvals before payment is issued may have led to this finding. Effect: Inadequate internal controls over credit card usage could adversely affect the School District’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the School District strengthens internal control policies and procedures over credit card usage and employees indicate their review and approval for all transactions to ensure they are properly authorized. Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-008 – Reporting (Compliance; Internal Control Over Compliance) Significant Deficiency AL Number: 84.041 Impact Aid AL Number: 84.425 Education Stabilization Fund Condition: The School District did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of March 31, 2023. Questioned Costs: None. Criteria: 2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds within the calendar year to submit a data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the end of the audit period. Cause: During FY 2020-21 and 2021-22 the School District employed multiple Business Managers. This affected providing documentation in a timely manner. Effect: Late filing of the data collection form results in noncompliance with requirements of Uniform Guidance which could lead to sanctions by funding agencies. Recommendation: We recommend the School District become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance. Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-006 – Internal Control Over Disbursements for Allowable Costs/Activities (Repeat Finding: 2021-007, 2020-007) Material Weakness AL Number: 84.425 Education Stabilization Fund Condition: During our testing of internal controls over nonpayroll disbursements we reviewed 10 transactions, noting there was no supporting documentation for 2 transactions. No additional documentation was present to show that approval was obtained through other means, such as by email, verbally or follow-up signature approval from the program director. The sampling was not a statistically valid sample. Questioned Costs: None. Criteria: Internal controls should be in place that provide reasonable assurance that all financial transactions are reviewed and approved before payments are made and reports generated. No one individual should handle a transaction from its inception to its completion. Cause: Inattention to the procedures already in place to ensure that all transactions are properly authorized by appropriate personnel signing approvals before payment is issued may have led to this finding. Effect: Inadequate internal controls over disbursements could adversely affect the School District’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the School District strengthen its internal control policies and procedures over expenditures and employees indicate their review and approval for all transactions to ensure they are properly authorized.Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-008 – Reporting (Compliance; Internal Control Over Compliance) Significant Deficiency AL Number: 84.041 Impact Aid AL Number: 84.425 Education Stabilization Fund Condition: The School District did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of March 31, 2023. Questioned Costs: None. Criteria: 2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds within the calendar year to submit a data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the end of the audit period. Cause: During FY 2020-21 and 2021-22 the School District employed multiple Business Managers. This affected providing documentation in a timely manner. Effect: Late filing of the data collection form results in noncompliance with requirements of Uniform Guidance which could lead to sanctions by funding agencies. Recommendation: We recommend the School District become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance. Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-006 – Internal Control Over Disbursements for Allowable Costs/Activities (Repeat Finding: 2021-007, 2020-007) Material Weakness AL Number: 84.425 Education Stabilization Fund Condition: During our testing of internal controls over nonpayroll disbursements we reviewed 10 transactions, noting there was no supporting documentation for 2 transactions. No additional documentation was present to show that approval was obtained through other means, such as by email, verbally or follow-up signature approval from the program director. The sampling was not a statistically valid sample. Questioned Costs: None. Criteria: Internal controls should be in place that provide reasonable assurance that all financial transactions are reviewed and approved before payments are made and reports generated. No one individual should handle a transaction from its inception to its completion. Cause: Inattention to the procedures already in place to ensure that all transactions are properly authorized by appropriate personnel signing approvals before payment is issued may have led to this finding. Effect: Inadequate internal controls over disbursements could adversely affect the School District’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by employees in the normal course of performing their assigned functions. Recommendation: We recommend that the School District strengthen its internal control policies and procedures over expenditures and employees indicate their review and approval for all transactions to ensure they are properly authorized.Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.

Finding 2022-008 – Reporting (Compliance; Internal Control Over Compliance) Significant Deficiency AL Number: 84.041 Impact Aid AL Number: 84.425 Education Stabilization Fund Condition: The School District did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of March 31, 2023. Questioned Costs: None. Criteria: 2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds within the calendar year to submit a data collection form and reporting package by a due date that is the earlier of 30 calendar days after receipt of the auditor’s report(s) or nine months after the end of the audit period. Cause: During FY 2020-21 and 2021-22 the School District employed multiple Business Managers. This affected providing documentation in a timely manner. Effect: Late filing of the data collection form results in noncompliance with requirements of Uniform Guidance which could lead to sanctions by funding agencies. Recommendation: We recommend the School District become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance. Views of Responsible Officials: Please refer to the Corrective Action Plan for management’s views and planned corrective action.