Audit 340901

Accounts payable testing and internal controls. Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost 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-nine (49) invoices, we noted the following exceptions: 1. One (1) instance of an invoice not being signed and dated to indicate goods and/or services received. 2. Three (3) in the sample where a second quote was not provided for purchases over the $5,000 requirement. 3. Two (2) in the sample where the invoice was dated prior to the purchase order. 4. Three (3) in the sample where the documentation provided did not contain proof of verification for suspension and debarment. 5. Two (2) instances where the district selected the higher quote but did not document the reason. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly implement an effective internal control system for accounts payable and did not follow the proper purchasing procedures. 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 materially 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 86.

Accounts payable testing and internal controls. Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost 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-nine (49) invoices, we noted the following exceptions: 1. One (1) instance of an invoice not being signed and dated to indicate goods and/or services received. 2. Three (3) in the sample where a second quote was not provided for purchases over the $5,000 requirement. 3. Two (2) in the sample where the invoice was dated prior to the purchase order. 4. Three (3) in the sample where the documentation provided did not contain proof of verification for suspension and debarment. 5. Two (2) instances where the district selected the higher quote but did not document the reason. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly implement an effective internal control system for accounts payable and did not follow the proper purchasing procedures. 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 materially 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 86.

Accounts payable testing and internal controls. Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost 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-nine (49) invoices, we noted the following exceptions: 1. One (1) instance of an invoice not being signed and dated to indicate goods and/or services received. 2. Three (3) in the sample where a second quote was not provided for purchases over the $5,000 requirement. 3. Two (2) in the sample where the invoice was dated prior to the purchase order. 4. Three (3) in the sample where the documentation provided did not contain proof of verification for suspension and debarment. 5. Two (2) instances where the district selected the higher quote but did not document the reason. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly implement an effective internal control system for accounts payable and did not follow the proper purchasing procedures. 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 materially 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 86.

Accounts payable testing and internal controls. Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost 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-nine (49) invoices, we noted the following exceptions: 1. One (1) instance of an invoice not being signed and dated to indicate goods and/or services received. 2. Three (3) in the sample where a second quote was not provided for purchases over the $5,000 requirement. 3. Two (2) in the sample where the invoice was dated prior to the purchase order. 4. Three (3) in the sample where the documentation provided did not contain proof of verification for suspension and debarment. 5. Two (2) instances where the district selected the higher quote but did not document the reason. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly implement an effective internal control system for accounts payable and did not follow the proper purchasing procedures. 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 materially 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 86.

Accounts payable testing and internal controls. Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost 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-nine (49) invoices, we noted the following exceptions: 1. One (1) instance of an invoice not being signed and dated to indicate goods and/or services received. 2. Three (3) in the sample where a second quote was not provided for purchases over the $5,000 requirement. 3. Two (2) in the sample where the invoice was dated prior to the purchase order. 4. Three (3) in the sample where the documentation provided did not contain proof of verification for suspension and debarment. 5. Two (2) instances where the district selected the higher quote but did not document the reason. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly implement an effective internal control system for accounts payable and did not follow the proper purchasing procedures. 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 materially 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 86.

Accounts payable testing and internal controls. Programs: Title I Grants to Local Educational Agencies, ALN #84.010 Elementary and Secondary School Emergency Relief Fund II, ALN #84.425D Elementary and Secondary School Emergency Relief Fund III ARP, ALN #84.425U Compliance Requirement: Allowable Cost 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-nine (49) invoices, we noted the following exceptions: 1. One (1) instance of an invoice not being signed and dated to indicate goods and/or services received. 2. Three (3) in the sample where a second quote was not provided for purchases over the $5,000 requirement. 3. Two (2) in the sample where the invoice was dated prior to the purchase order. 4. Three (3) in the sample where the documentation provided did not contain proof of verification for suspension and debarment. 5. Two (2) instances where the district selected the higher quote but did not document the reason. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly implement an effective internal control system for accounts payable and did not follow the proper purchasing procedures. 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 materially 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 86.