Audit 363601

Criteria: The Federal audit clearinghouse requires that indendent audits be completed and uploaded to their database no later than 9 months after the fiscal year-end. Condition: DSCEJ did not engage an independent auditor on a timely basis. The independent auditor was not engaged until after the 9 month deadline had expired. Cause: We were unable to determine the casue for this condition. Effect: Delinquent filing of DSCEJ's indpendent audit represents noncompliance with the federal guidelines. Recommendation: We recommend that DSCEJ engage its independent auditor on a timely basis. Management's Response: See management's corrective action plan on page 28.

Questioned Costs: $94,732 Criteria: The grant agreement and generally accepted accounting principles (GAAP) require expenses to be recorded in the period in which goods or services are received to ensure accurate and timely financail reporting. Condition: During testing of disbursements charged to the 93.142 Hazardous Waste Worker Health and Safety Training grant, we identified expenses for services rendered in October through December 2022 that were not recorded in the general ledger until 2023. Although the service dates fell within the grant’s approved period of performance (June 1, 2022 – May 31, 2023), the expenses were recognized in the subsequent fiscal year. Cause: While the organization has established procedures and a written manual for closing the books, these procedures were not consistently followed for the invoices noted above. Effect: Expenses incurred during the 2022 calendar year were recorded in 2023, which may impact the accuracy of grant financial reports and budget-to-actual comparisons. While the costs remain allowable under the grant, late recognition may misstate grant expenditures by fiscal period and hinder effective monitoring. Additionally, the total expenditures on the Schedule of Expenditures of Federal Awards were overstated, causing the need for an adjustment. Recommendation: We recommend the entity reinforce its existing month-end and year-end close procedures with accounting staff to ensure all expenses are consistently recorded in the correct accounting period. A secondary review of invoices near period-end could help strengthen adherence to the current policies. Management's Response: See management's corrective action plan on page 28.

Criteria: The Federal audit clearinghouse requires that indendent audits be completed and uploaded to their database no later than 9 months after the fiscal year-end. Condition: DSCEJ did not engage an independent auditor on a timely basis. The independent auditor was not engaged until after the 9 month deadline had expired. Cause: We were unable to determine the casue for this condition. Effect: Delinquent filing of DSCEJ's indpendent audit represents noncompliance with the federal guidelines. Recommendation: We recommend that DSCEJ engage its independent auditor on a timely basis. Management's Response: See management's corrective action plan on page 28.

Questioned Costs: $94,732 Criteria: The grant agreement and generally accepted accounting principles (GAAP) require expenses to be recorded in the period in which goods or services are received to ensure accurate and timely financail reporting. Condition: During testing of disbursements charged to the 93.142 Hazardous Waste Worker Health and Safety Training grant, we identified expenses for services rendered in October through December 2022 that were not recorded in the general ledger until 2023. Although the service dates fell within the grant’s approved period of performance (June 1, 2022 – May 31, 2023), the expenses were recognized in the subsequent fiscal year. Cause: While the organization has established procedures and a written manual for closing the books, these procedures were not consistently followed for the invoices noted above. Effect: Expenses incurred during the 2022 calendar year were recorded in 2023, which may impact the accuracy of grant financial reports and budget-to-actual comparisons. While the costs remain allowable under the grant, late recognition may misstate grant expenditures by fiscal period and hinder effective monitoring. Additionally, the total expenditures on the Schedule of Expenditures of Federal Awards were overstated, causing the need for an adjustment. Recommendation: We recommend the entity reinforce its existing month-end and year-end close procedures with accounting staff to ensure all expenses are consistently recorded in the correct accounting period. A secondary review of invoices near period-end could help strengthen adherence to the current policies. Management's Response: See management's corrective action plan on page 28.