Audit 375895

Federal Agencies: U.S. Department of Education Federal Programs: “Southeast Alaska Full Service Community Schools”: Association of Alaska School Boards ALN: 84.215J Award Numbers: S215J220051 Award Years: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. CHATHAM SCHOOL DISTRICT Federal Schedule of Findings and Questioned Costs, Continued Criteria: Internal control procedures should be in place to ensure that proper controls are in place to prevent financial misstatements due to either fraud or error. Condition and Context: During our tests of transactions for internal controls over compliance and compliance we identified one transaction with no purchase order or approval. There was also no authorization for this transaction to be coded to the grant. Cause: Lack of internal control over credit card transactions. Effect: Lack of internal controls over credit cards could result in expenditures being miscoded to the program or allow improper or unauthorized transactions to not be prevented, detected, or corrected in a timely manner. Questioned Costs: Questioned costs are under the reporting threshold of $25,000. Repeat Finding: Yes. Recommendation: We recommend the District adhere to their internal control policies to ensure accurate controls over credit card transactions. Managements Response: Management agrees with this finding. See Corrective Action Plan.