Enhance internal controls and implementation of enhanced monitoring of grants and overall grants administration Criteria:Established internal controls surrounding financial reporting should emphasize should ensure the importance of processing and monitoring financial activity in a timely manner. This should include, but not be limited to, posting activity to the proper accounts as activity is incurred (through requisition and purchase order processes) and routine monitoring of account balances (including reconciliation with approved grant budgets and related documentation.). Condition and Context: During our current year audit, we noted instances of journal entries being posted to reclassify expenditures from the District’s operational budget to certain grants at year end. In our professional opinion, while adjustments may be required in certain instances, generally, established internal control policies and procedures should ensure that all activity (including grant transactions) is appropriately charged as incurred. This allows for timely and accurate financial reporting. Additionally, grant administrators should work closely with accounting and business office personnel to monitor activity and ensure that it is posted to the proper accounts/grants in a timely manner. Cause and effect:The District has been working to implement corrective action; however, the District has yet to fully implement comprehensive internal control policies and procedures, inclusive of grants administration and monitoring. Improper monitoring of grants in a timely manner has the potential to result in noncompliance; this in turn could have an impact on the District’s financial statements. Perspective Information: There was a similar finding reported in the prior year audit related to enhancement of grants management. Due to the timing of the prior year audit (June 26, 2024), the finding could not be fully addressed by the District for the fiscal year ending June 30, 2024. Questioned Costs: None. Auditor’s Recommendation: We continue to recommend the District review the design and implementation of internal controls surrounding grants management, compliance and reporting. Procedures should ensure all activity within the District’s general ledger is monitored in a timely manner. We recommend additional approval (separate from posting) of the reclassification of activity (non-standard journal entries) and appropriate detail prior to posting within the accounting records. Additionally, such journal entries be posted by one individual (District), via appropriate supervisory we recommend all District established policies and procedures be reviewed on an annual basis to ensure all financial reporting and compliance objectives are achieved. It is important to note that improper monitoring of grants has the potential to result in noncompliance, which in turn could have an impact on the District’s financial statements. We continue to recommend an additional centralized monitoring program be established to ensure the District’s compliance with all federal programs.
Completion and filing of the Single Audit in accordance with OMB guidelines. Criteria: OMB guidelines generally requires the District’s Single Audit to be completed and filed by March 31 of the following year. Condition: The District was unable to meet the filing deadline in the current year, inclusive of all required documentation for audit (inclusive of SEFA) in a timely manner. Questioned Costs:None Effect:The District’s filing is considered late by OMB. Auditor’s Recommendation:We recommend the District work to meet the required filing deadline.
Perform assessment of internal control policies and procedures in the food service program Criteria: Internal control policies and procedures should be reviewed and updated routinely to ensure all aspects of compliance and documentation related thereto overall administration and compliance surrounding food service program. Condition: The District participates in a procurement cooperative (bidding and awarding) performed by a third-party entity on behalf of the participants. Pursuant to the established guidelines, it is recommended that each participating entity enters into an individual contractual arrangement with each awarded vendor. The District utilizes a standard form which references the third-party entity throughout. The District should utilize standardized District contracts with all vendors to ensure all appropriate terms for the District and those applicable to federal award programs and the Uniform Guidance (Appendix E) (inclusive, but not limited to suspension, debarment, buy American, etc.) have been included. Moreover, all procurement documentation should be maintained on file by appropriate District personnel, and all invoices from vendors should be clearly documented as items/costs have been verified to the underlying procurement and contract. The following are additional considerations which have been communicated to management recommended to management in previous years, which we continue to evaluate: We recommend the enhancement of the documentation surrounding daily work, inclusive of formal sign-off/attestation by appropriate supervisory personnel, (meal counts, daily cashout). District management should continually evaluate the documentation within allowable guidance and management’s expectations. Sign-off by appropriate supervisory personnel of the monthly claims sheet, which is required to be completed daily and maintained. We recommend documentation be enhanced surrounding ordering, ensuring procurement from Ensure reporting from the point-of-sale system is utilized and signed-off/attested to for the monthly payment of meals tax. Effect: Compliance with and documentation thereof may be lacking without routine review and assessment. Questioned Costs: None Auditor’s Recommendation: We recommend the District perform an assessment of internal control policies and procedures, evaluating and enhancing accordingly to ensure all compliance and other documentary requirements are met on an annual basis. This assessment should be incorporated with a routinely implemented risk assessment program.
Enhance internal controls and implementation of enhanced monitoring of grants and overall grants administration Criteria:Established internal controls surrounding financial reporting should emphasize should ensure the importance of processing and monitoring financial activity in a timely manner. This should include, but not be limited to, posting activity to the proper accounts as activity is incurred (through requisition and purchase order processes) and routine monitoring of account balances (including reconciliation with approved grant budgets and related documentation.). Condition and Context: During our current year audit, we noted instances of journal entries being posted to reclassify expenditures from the District’s operational budget to certain grants at year end. In our professional opinion, while adjustments may be required in certain instances, generally, established internal control policies and procedures should ensure that all activity (including grant transactions) is appropriately charged as incurred. This allows for timely and accurate financial reporting. Additionally, grant administrators should work closely with accounting and business office personnel to monitor activity and ensure that it is posted to the proper accounts/grants in a timely manner. Cause and effect:The District has been working to implement corrective action; however, the District has yet to fully implement comprehensive internal control policies and procedures, inclusive of grants administration and monitoring. Improper monitoring of grants in a timely manner has the potential to result in noncompliance; this in turn could have an impact on the District’s financial statements. Perspective Information: There was a similar finding reported in the prior year audit related to enhancement of grants management. Due to the timing of the prior year audit (June 26, 2024), the finding could not be fully addressed by the District for the fiscal year ending June 30, 2024. Questioned Costs: None. Auditor’s Recommendation: We continue to recommend the District review the design and implementation of internal controls surrounding grants management, compliance and reporting. Procedures should ensure all activity within the District’s general ledger is monitored in a timely manner. We recommend additional approval (separate from posting) of the reclassification of activity (non-standard journal entries) and appropriate detail prior to posting within the accounting records. Additionally, such journal entries be posted by one individual (District), via appropriate supervisory we recommend all District established policies and procedures be reviewed on an annual basis to ensure all financial reporting and compliance objectives are achieved. It is important to note that improper monitoring of grants has the potential to result in noncompliance, which in turn could have an impact on the District’s financial statements. We continue to recommend an additional centralized monitoring program be established to ensure the District’s compliance with all federal programs.
Completion and filing of the Single Audit in accordance with OMB guidelines. Criteria: OMB guidelines generally requires the District’s Single Audit to be completed and filed by March 31 of the following year. Condition: The District was unable to meet the filing deadline in the current year, inclusive of all required documentation for audit (inclusive of SEFA) in a timely manner. Questioned Costs:None Effect:The District’s filing is considered late by OMB. Auditor’s Recommendation:We recommend the District work to meet the required filing deadline.
Perform assessment of internal control policies and procedures in the food service program Criteria: Internal control policies and procedures should be reviewed and updated routinely to ensure all aspects of compliance and documentation related thereto overall administration and compliance surrounding food service program. Condition: The District participates in a procurement cooperative (bidding and awarding) performed by a third-party entity on behalf of the participants. Pursuant to the established guidelines, it is recommended that each participating entity enters into an individual contractual arrangement with each awarded vendor. The District utilizes a standard form which references the third-party entity throughout. The District should utilize standardized District contracts with all vendors to ensure all appropriate terms for the District and those applicable to federal award programs and the Uniform Guidance (Appendix E) (inclusive, but not limited to suspension, debarment, buy American, etc.) have been included. Moreover, all procurement documentation should be maintained on file by appropriate District personnel, and all invoices from vendors should be clearly documented as items/costs have been verified to the underlying procurement and contract. The following are additional considerations which have been communicated to management recommended to management in previous years, which we continue to evaluate: We recommend the enhancement of the documentation surrounding daily work, inclusive of formal sign-off/attestation by appropriate supervisory personnel, (meal counts, daily cashout). District management should continually evaluate the documentation within allowable guidance and management’s expectations. Sign-off by appropriate supervisory personnel of the monthly claims sheet, which is required to be completed daily and maintained. We recommend documentation be enhanced surrounding ordering, ensuring procurement from Ensure reporting from the point-of-sale system is utilized and signed-off/attested to for the monthly payment of meals tax. Effect: Compliance with and documentation thereof may be lacking without routine review and assessment. Questioned Costs: None Auditor’s Recommendation: We recommend the District perform an assessment of internal control policies and procedures, evaluating and enhancing accordingly to ensure all compliance and other documentary requirements are met on an annual basis. This assessment should be incorporated with a routinely implemented risk assessment program.