Audit 389467

U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Names: Title I, Grants to Local Educational Agencies (AL #: 84.010), Supporting Effective Instruction State Grant (AL #: 84.367), COVID-19 – Education Stabilization Fund (AL #: 84.425) MATERIAL WEAKNESS Compliance – Cash Management Criteria: Controls should ensure that bank reconciliations are prepared in a timely manner each month to enable the Board to make timely decisions based upon accurate data. Condition: State bank account reconciliations were not prepared in a timely manner during the year. Effect: Since bank account reconciliations were not performed in a timely manner, management decisions could have been made by the Board while relying upon inaccurate financial reporting. Cause: The June 30, 2024 audit could not be completed until August, 2025 due to account reconciliations having to be finalized. Therefore, the account reconciliation process for the 2024-2025 fiscal year was already approximately a full year behind at the conclusion of the June 30, 2024 audit. Management implemented controls and procedures during the 2024-2025 year to address this issue and has worked diligently to catch-up these reconciliations during the 2024-2025 year. Questioned costs: None. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, Finding 24-06. Recommendation: Management has indicated that with the controls and procedures put in place during the 2024-2025 year, the district is now current with its monthly reconciliation processes. We recommend that management continue to monitor and review these monthly reconciliations to ensure that all general ledger accounts are being reconciled in a timely manner. Views of responsible officials and planned corrective actions: The Board of Education agrees with this finding. Management will take the necessary actions as described in the Corrective Action Plan.