Audit 341795

Criteria - All federal expenditures should be reviewed and approved in accordance with the District's policies and procedures which include the review and maintenance of adequate supporting documentation for all claims. Additionally, expenditures should be recognized when incurred. Condition -The District did not have adequate controls in place to ensure that all expenditures are recorded when costs are incurred. Additionally, the District did not maintain sufficient support for a claimed expenditure. Questioned Cost - The questioned cost in $5,885. Context - The District improperly recorded and claimed an expenditure under the major program for a purchase order that was not ultimately submitted to the vendor and in which there was no performance obligation performed or transfer of goods. The District did not follow review and approval policy and procedures in place over grant expenditures and therefore there was a lack of support for the claimed expenditure. Effect - An expenditure was improperly recognized by the District and claimed under the major program resulting in an unallowable cost. Cause - Improper processing of a purchase order that had not been submitted to the vendor which caused the expenditure to be improperly recognized as well as claimed without the cost being incurred. Recommendation -Management should implement a more thorough review to ensure purchase orders have been fulfilled and costs have been incurred in order for expenditures to be recognized in the District's accounting system. Additionally, Management should implement secondary review and approval procedures to ensure all grant expenditures have adequate support prior to being included in claim reports. Management's Response -Management agrees with this finding. See corrective action plan.

Criteria - All federal expenditures should be reviewed and approved in accordance with the District's policies and procedures which include the review and maintenance of adequate supporting documentation for all claims. Additionally, expenditures should be recognized when incurred. Condition -The District did not have adequate controls in place to ensure that all expenditures are recorded when costs are incurred. Additionally, the District did not maintain sufficient support for a claimed expenditure. Questioned Cost - The questioned cost in $5,885. Context - The District improperly recorded and claimed an expenditure under the major program for a purchase order that was not ultimately submitted to the vendor and in which there was no performance obligation performed or transfer of goods. The District did not follow review and approval policy and procedures in place over grant expenditures and therefore there was a lack of support for the claimed expenditure. Effect - An expenditure was improperly recognized by the District and claimed under the major program resulting in an unallowable cost. Cause - Improper processing of a purchase order that had not been submitted to the vendor which caused the expenditure to be improperly recognized as well as claimed without the cost being incurred. Recommendation -Management should implement a more thorough review to ensure purchase orders have been fulfilled and costs have been incurred in order for expenditures to be recognized in the District's accounting system. Additionally, Management should implement secondary review and approval procedures to ensure all grant expenditures have adequate support prior to being included in claim reports. Management's Response -Management agrees with this finding. See corrective action plan.