Audit 349861

SIGNIFICANT DEFICIENCY: Finding 2024-001 Information on the Federal Program: The finding relates to Federal funds received from the U.S. Department of Treasury, passed through the District of Columbia Office of the State Superintendent of Education during fiscal year 2024 under the COVID-19 - Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027. Criteria: The Organization is required to maintain accurate and complete records of all financial transactions, including cash disbursements, in accordance with generally accepted accounting principles (GAAP), Uniform Guidance requirements, and internal control policies, each cash disbursement must be supported by an appropriate documentation to ensure proper authorization and legitimacy of the expense. Condition: Out of twenty-five cash disbursement transactions, the supporting credit card receipts for six cash disbursement transactions, totaling $1,088, of which one instance related to the federal major program totaling $415, were not properly maintained in the Organization’s financial records. Cause: The Organization did not maintain credit card receipts for all cash disbursement transactions. Effect: The Organization is not in compliance with their internal control policies, Uniform Guidance requirements and external regulations requiring proper documentation of cash disbursements. Questioned Costs: None Was the sampling a statistically valid sample? Yes Was the finding a repeat of a finding in the immediately prior year? No Recommendation: Management should establish a more robust system for ensuring that credit card receipts are always obtained, reviewed, and filed before making any disbursements. In addition, management should implement supporting internal control policies related to the retention and archiving of receipts and other supporting documents, with clear responsibilities assigned to individuals. Management Response: We concur with the recommendation. We have met with all employees responsible for submitting the required documentation related to all transactions. We discussed with the employees the importance of not only completing the documentation, but also the importance of its proper submission to the finance department. We will be implementing a loss receipt form that must be completed by all employees that cannot provide the necessary documentation for transactions. This will be implemented effective March 18, 2025.

SIGNIFICANT DEFICIENCY: Finding 2024-001 Information on the Federal Program: The finding relates to Federal funds received from the U.S. Department of Treasury, passed through the District of Columbia Office of the State Superintendent of Education during fiscal year 2024 under the COVID-19 - Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027. Criteria: The Organization is required to maintain accurate and complete records of all financial transactions, including cash disbursements, in accordance with generally accepted accounting principles (GAAP), Uniform Guidance requirements, and internal control policies, each cash disbursement must be supported by an appropriate documentation to ensure proper authorization and legitimacy of the expense. Condition: Out of twenty-five cash disbursement transactions, the supporting credit card receipts for six cash disbursement transactions, totaling $1,088, of which one instance related to the federal major program totaling $415, were not properly maintained in the Organization’s financial records. Cause: The Organization did not maintain credit card receipts for all cash disbursement transactions. Effect: The Organization is not in compliance with their internal control policies, Uniform Guidance requirements and external regulations requiring proper documentation of cash disbursements. Questioned Costs: None Was the sampling a statistically valid sample? Yes Was the finding a repeat of a finding in the immediately prior year? No Recommendation: Management should establish a more robust system for ensuring that credit card receipts are always obtained, reviewed, and filed before making any disbursements. In addition, management should implement supporting internal control policies related to the retention and archiving of receipts and other supporting documents, with clear responsibilities assigned to individuals. Management Response: We concur with the recommendation. We have met with all employees responsible for submitting the required documentation related to all transactions. We discussed with the employees the importance of not only completing the documentation, but also the importance of its proper submission to the finance department. We will be implementing a loss receipt form that must be completed by all employees that cannot provide the necessary documentation for transactions. This will be implemented effective March 18, 2025.