Audit 409915

Significant Deficiencies /Immaterial Non-Compliance 2024-005 Finding Repeat Finding 2023-005 Accounts payable testing and internal controls. Programs: COVID-19 – Elementary & Secondary School Emergency Relief Fund II (ESSER), ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief ARP III (ESSER) ALN #84.425U Child Nutrition Cluster: National School Lunch Program ALN #10.555 Summer Food Service Program for Children ALN #10.559 Compliance Requirement: Allowable Costs/Cost Principles Criteria: An effective system of internal control is the responsibility of management. Management should establish an internal control system that ensures strong financial accountability and safeguarding of assets. This includes maintenance of accurate accounting records and following the proper purchasing procedures. Condition: During our testing of forty-four (44) invoices, we noted the following exceptions: 1. Thirty-two (32) instances where invoices were not signed when received. 2. Fifteen (15) instances where invoices were dated prior to purchasing documents. 3. Seventeen (17) instances where invoices were not paid timely. 4. Five (5) instances where District changed software and unable to pull purchase requisition. 5. Two (2) instances where quotes were not obtained. 6. One (1) instance where bus application was not signed by Mississippi Department of Education. 7. Four (4) instances where purchasing documents were not maintained. 8. One (1) instance where invoice was not provided. Context: Internal control procedures were tested for accounts payable in the major federal funds. Cause: The district did not properly ensure that the accounts payable internal control system was being followed for all transactions including all purchasing procedures required by the state. Effect: Without a proper internal control system being in place to ensure accurate accounting records, there is an increased risk that the financial statements could be misstated. Questioned Cost: None Recommendation: District should implement policies and procedures to establish an internal control system that will require accountability with regard to accounts payable and purchasing. This will ensure the proper safeguarding of assets and accurate accounting records.

Significant Deficiencies /Immaterial Non-Compliance Data Collection Form Not Submitted Timely to the Federal Audit Clearinghouse. Programs: COVID-19 – Elementary & Secondary School Emergency Relief Fund II (ESSER), ALN #84.425D COVID-19 – Elementary & Secondary School Emergency Relief ARP III (ESSER) ALN #84.425U Child Nutrition Cluster: National School Lunch Program ALN #10.555 Summer Food Service Program for Children ALN #10.559 Compliance Requirement: Special Reporting Criteria: In accordance with 2 CFR § 200.512- Report Submission, "the single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." Condition: The required data collection form and reporting package to the Federal Audit Clearinghouse was not submitted within established timeframe. Cause: There was a delay in the preparation of the financial statements on a timely basis. Effects: The school district did not comply with Federal reporting regulations. Questioned Cost: None. Recommendation: We recommend that the School District strengthen its internal control systems over reporting to ensure single audit reporting package and data collection form are submitted to the Federal Audit Clearinghouse within established timeframe and financial statements are prepared timely.