Audit 384070

Criteria: According to 2 CFR part 200, the District is required to file accurate reports with the Missouri Department of Elementary and Secondary Education, the granting agency. Condition: It was noted for the 2024/2025 school year, the information reported on the reports filed with the granting agency could not be reconciled to the District's general ledger. The District completed the Final Expenditure Report as required but could not produce support for the amounts drawn. The District had to go back and recode multiple years of expenses to be able to allocate the revenues to allowable expenses. Cause: The District's staff in charge of reporting for federal awards is inexperienced in single audit requirements and unaware of many requirements relating to coding and tracking of awards. Effect: Risk is present that non-allowable costs could end up being reported as allowable costs for grants and not be detected or reported correctly in the financial statements and schedule of expenditures of federal awards. Recommendation: We recommend that increased monitoring over federal awards funds be implemented and that expenses be checked for compliance and proper reporting in the schedule of expenditures of federal awards and Final Expenditure Reports as required by the granting agency. This should include reconciling between expenses being tracked on reports outside of the general ledger and the expenses being entered into the general ledger to ensure that each grant is properly recorded. Management Response: The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal funds to ensure these funds reconcile to the general ledger going forward.

Criteria: According to 2 CFR part 200.516, the District is required to have internal controls in place to allow the District to properly monitor the ongoing activities relating to the receipt and expenditure of federal awards. Condition: It was noted for the 2024/2025 school year, the District had not set up monitoring controls over the handling of federal awards received and spent during the year that would be necessary to track and report multi-year grants. Cause: The District lacks controls over the reporting for federal awards and single audit requirements and is unaware of many requirements relating to coding and tracking of awards. Effect: Risk is present that non-allowable costs could end up being reported as allowable costs for grants and not be detected or reported correctly in the financial statements and schedule of expenditures of federal awards. Recommendation: We recommend that increased monitoring over federal awards funds be implemented and that federal expenses be more thoroughly tracked by those in charge of performing monitoring activities. We also recommend that the District use the project coding provided by the oversight agency to help with this tracking as expenses occur rather than recoding expenses at year end to match the agency reports. Management Response: The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal funds to ensure these funds reconcile to the general ledger going forward.