Audit 397075

SECTION III: FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding No. 2025-001 Federal Award: U.S. Department of Commerce, National Telecommunications and Information Administration (NTIA); Connecting Minority Communities (CMC) Pilot Program (Assistance Listing 11.028) Finding Type: Reporting Criteria: The District is required to submit semi-annual Performance (Technical) Reports where the reporting of grant expenditures must reconcile to the expenditures reported on SF-425 for the same reporting period. Condition: For the reporting period ended March 31, 2025, the District’s CMC Performance Report Line 8k (Totals) agreed to SF‑425 Line 10b (Federal cash disbursements) rather than SF‑425 Line 10e (Federal share of expenditures). Effect: The Performance Report did not accurately present total expenditures for the CMC award for the period. This results in noncompliance with the program’s reporting requirements. Cause: The Performance Report reported cash disbursement data instead of accrual‑basis expenditure data. This appears to be on oversight and an isolated occurrence where the cash disbursement versus the expenditure amount was inserted. Questioned Cost: None Recommendation: We recommend that more care be exercised by the person responsible for reviewing and signing off on the accuracy of the Performance Report prior to it being submitted. We also recommend that the District determine whether they need to submit a corrected Performance Report for the reporting period ended March 31, 2025. Management Response: Management acknowledges that due to an oversight of cash vs. accrual basis accounting, an immaterial misstatement not resulting in questioned costs or returned funds occurred in grant reporting. To ensure the increased accuracy of future grant reporting, Management will implement a dual-review process for all future performance reporting. The grant accountant responsible for the financial Performance Report data will now complete a standardized quality assurance checklist before submission. This report will then be formally reviewed and cross-referenced against source data by a secondary finance administrator to verify the accuracy of reported metrics.