Audit 372470

2021-012 Reporting Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies – CFDA 84.010 Supporting Effective Instruction State Grants – CFDA 84.367 School Improvement Grants – CFDA 84.377 Condition: The School District reports related to these grants were either filed late or not at all. The accuracy of the reports that were filed could not be determined as the supporting documentation or reconciliations for the amounts disclosed in the report were not complete. Criteria: For Title I, Title II and School Improvement grants, the School District is required to submit Quarterly Reconciliation of Cash on Hand Reports within 10 working days after the end of each quarter, and a Final Expenditure Report which is due 30 days after the funding period ends, or October 30th. The reports should be supported by the School Districts financial records. Effect: The School District was not in compliance with their reporting requirements. Cause: The School District did not properly complete and file all reports on an accurate, timely basis. Recommendation: We recommend that the School District establish a policy and procedure to ensure the reports are properly completed and filed on a timely basis. The completion of reports should include a step in which the School District personnel completing the report print out all supporting general ledger expense reports for the quarter and reconcile those general ledger reports to the various amounts disclosed on the quarterly performance report. These reports and reconciliations should then be attached to and maintained with a copy of the filed reports in the School District records. This same process should be applied to the Final Expenditure Report as well. The completed quarterly reports should then be filed within 10 working days of the end of each calendar quarter, and the Final Expenditure Report should be filed within 30 days after the end of the funding period. Management’s Response: The District has appointed a Federal Programs Coordinator who is familiar with the Single Audit requirements of the Uniform Guidance. Management and the Federal Programs Coordinator have implemented policies and procedures to identify grant reporting due dates and identify relevant grant information and source documentation need to for reporting requirements. The Federal Programs Coordinator reviews grant reporting filing deadlines on a regular basis and reconciles source documentation to the general ledger in the accounting software with Business Office management prior to filing quarterly and final expenditure reports. Questioned Costs: None Repeat Finding: This is a repeat finding from the previous audit, 2020-009.

2021-011 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Federal Agency: Department of Education & Department of the Treasury Federal Program: Title I Grants to Local Educational Agencies – ALN 84.010 Supporting Effective Instruction State Grants – ALN 84.367 School Improvement Grants – ALN 84.377 Elementary and Secondary School Emergency Relief Fund – ALN 84.425 Coronavirus Relief Fund – ALN 21.019 Condition: The School District was unable to provide supporting documentation for all expenses. Criteria: The expenses charged to the program by the School District should be supported by the School District’s financial records. We were unable to observe documentation supporting salaries paid, and multiple invoices for disbursement could not be examined. Effect: The School District was not in compliance with the requirements. Cause: The School District did not maintain adequate documentation for expenses. Recommendation: We recommend that the School District establish a policy and procedure to ensure supporting documentation is maintained for all transactions. Management’s Response: The District has appointed a Federal Programs Coordinator who is familiar with the Single Audit requirements of the Uniform Guidance. Management has restructured its business office and is working with third party consultants in conjunction with the Federal Programs Coordinator to implement policies and procedures to properly document federal grant expenditures. These policies and procedures include maintaining proper source documentation for federal award program activities and reconciling that documentation with amounts recorded in the general ledger within the District’s accounting software on a consistent basis. Questioned Costs: None Repeat Finding: This is a repeat finding from the previous audit, 2020-008.