Audit 33649

Criteria: The federal program noted above is a reimbursement-based grant. As required by the Uniform Guidance (2 CFR section 200.305(b)(3)), when non-federal entities are funded under the reimbursement method, the District is required to pay for the costs for which reimbursement is requested prior to the date of the reimbursement request. Condition and Context: Internal controls were not sufficient to ensure unspent funds were returned in a timely fashion, resulting in the District drawing down grant funds before expenditures had been occurred. Effect of Condition: The District?s system of internal control did not identify the issue noted above and as a result the District did not comply with the requirements. Cause: A lack of oversight by personnel over the federal program led to noncompliance with the requirement of Uniform Guidance as it pertains to the Cash Management Policy and in returning approximately $35,000 in unspent funds in a timely fashion. Questioned Costs: None Recommendation: Finance and management should be familiar with all aspects of the Cash Management Policy and ensure that it meets the requirements of the Uniform Guidance. View of Responsible Officials and Planned Corrective Action: The District agrees with the finding and management will take necessary steps to adopt a cash management policy that meets all the requirements.

Criteria: The federal program noted above is a reimbursement-based grant. As required by the Uniform Guidance (2 CFR section 200.305(b)(3)), when non-federal entities are funded under the reimbursement method, the District is required to pay for the costs for which reimbursement is requested prior to the date of the reimbursement request. Condition and Context: Internal controls were not sufficient to ensure unspent funds were returned in a timely fashion, resulting in the District drawing down grant funds before expenditures had been occurred. Effect of Condition: The District?s system of internal control did not identify the issue noted above and as a result the District did not comply with the requirements. Cause: A lack of oversight by personnel over the federal program led to noncompliance with the requirement of Uniform Guidance as it pertains to the Cash Management Policy and in returning approximately $35,000 in unspent funds in a timely fashion. Questioned Costs: None Recommendation: Finance and management should be familiar with all aspects of the Cash Management Policy and ensure that it meets the requirements of the Uniform Guidance. View of Responsible Officials and Planned Corrective Action: The District agrees with the finding and management will take necessary steps to adopt a cash management policy that meets all the requirements.