Audit 379517

2025-004: Full-Service Community Schools – Assistance Listing No. 84.215J, Grant No. – S215J220016; Grant period – year ended June 30, 2025. Material Weakness: The material weakness at Finding 2025-003 also applies to this grant. Criteria: Internal controls should be in place that ensure accurate recording of transactions and grant monitoring against approved budgets. Condition: During the current year, adjusting journal entries were necessary to properly reflect the grant activity in the correct period. Entries totaling $54,165 were necessary to reflect transactions in the proper period for the Full-Service Community Schools grant. Cause: The District did not have a process in place that monitored grants and ensure recognition in the proper fund and period. Effect: Failure to properly monitor and review federal grant reporting increases the risk of noncompliance with federal requirements, which could result in questioned costs, delayed reimbursement, or loss of funding. Questioned Costs: None Perspective Information: The District did not apply payment to the accounts payable and receivable in the prior year, but recorded the expenditures and revenue in the current year, however amounts requested for reimbursement did not exceed the expenditures allowed at June 30, 2025. Recommendation: As discussed in Finding 2025-003, we recommend the District implement a process that ensures an understanding of the grant revenue and expenditure recognition process. Regular reconciliations should be performed and monitored against the grant finance reports. Expenditures should be monitored against the approved budgets and overspent grants. Views of Responsible Officials and Planned Corrective Actions: The District plans to ensure in-depth training on all grants the District receives and require regular reconciliations be performed and institute more oversight over the process.