2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.
2022-003 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the overall grant management were not operating properly. As a result, we were unable to obtain a complete population of the federal expenditures that were claimed as part of the Education Stabilization Funds. Criteria: Proper functioning internal controls would result in the District having control procedures in place for grant management. Cause: There were no controls in place to allow the proper coding of expenditures to reflect the federal funds that were incurred and therefore a complete population of expenditures was unable to be determined. Effect: The District was unable to provide a complete listing of federal expenditures generated by their general ledger system to serve as the complete population to audit the federal expenditures being claimed under the Education Stabilization Fund. Recommendation: The District's internal control system over grant management related to the Education Stabilization Fund should be reviewed and modified to allow for proper management of grants and coding of expenditures which will lead to accurate report generation. Views of Responsible Officials and Planned Corrective Actions: In the future the District business office will correctly allocate and code all transactions upon business manager approval of purchase requisitions. This will eliminate the need to later create journal entries to move transactions to the correct fund later and capture all expenses correctly the first time they are entered.
2022-004 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D; Grant Period - For the year ended June 30, 2022 Condition: The final federal expenditure report submitted for the ESSER II grant was unable to be reconciled with the District's general ledger system. As a result, expenses reported by the District were unable to be verified. Criteria: Proper procedures in place to track federal funding as well as proper controls in place to complete the reporting process would result in an accurate federal claiming process. Cause: The District did not have procedures in place to reconcile the final federal expenditure report prepared with the District's general ledger system. Effect: The District was unable to provide records to substantiate the final federal expenditure report submitted for ESSER II. Context: The final federal expenditure report was higher than the related general ledger accounts by $543,364. Recommendation: The District should implement procedures to track federal expenditures and reconcile these federal expenditures with the federal expenditure reports as they are prepared. Views of Responsible Officials and Planned Corrective Actions: The District business office will utilize the same procedures as described in corrective action 2022-003 to eliminate issues with the FER not matching software produced reports. Communication and approval of financial reports by the business manager and the principal of curriculum will occur before quarterly and FER submissions.
2022-005 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the federal expense approval process were not operating properly. As a result, we were unable to review approval for a selection of expenses claimed as part of the Education Stabilization Funds. Criteria: The District's policy is to have a purchase order signed by the Business Manager for all purchases. For invoices paid with a check, the District's policy is to have three authorized check signors which provides approval for payment. For all other types of payment, the District's policy is inconsistent for expense approval. Proper functioning internal controls would result in the District having consistent control procedures in place for expense approval. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to provide evidence of both the purchase order approval and the disbursement approval for 8 of 10 items selected for testing as part of the allowable cost testwork performed. Effect: The District was unable to provide documentation to verify these federal expenditures were approved. Context: A sample of 10 expenditures totaling $360,908 was selected for testing from a population of 44 expenditures totaling $878,544. We were unable to review a signed purchase order for 5 of 10 expenditures selected for testing. The District did not have a consistent method for approval of expenditures and therefore we were unable to review signed expense approval for 7 of 10 expenditures. For 1 of 10 items selected for testing, we were unable to review any form of supporting documentation and therefore is considered a questioned cost totaling $8,527. Recommendation: The District's internal control system should be modified to document approval of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: Going forward, all expenses will have an invoice, PO, Requisition, and any other supporting documentation with the check stub for each purchase on file for 7 years.
2022-006 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The internal controls over the payroll process did not identify the same payroll listed on the federal expenditure being claimed twice under this federal program. Criteria: Proper functioning internal controls would result in the District having control procedures in place to identify this duplication. Cause: The system of controls over the Education Stabilization Fund did not operate properly to allow for the District to identify the duplicate weeks of payroll being claimed as part of this grant. Effect: The District claimed duplicate payroll for 2 of 4 employees selected for testing. Context: A sample of 4 employees totaling $152,615 was selected for testing from a population of 38 employees totaling $408,826. The test found duplicate payroll claimed under the federal program for 2 of 4 employees selected for testing with questioned costs totaling $662. Recommendation: The District's internal control system over the federal payroll claiming process related to the Education Stabilization Fund should be reviewed and modified to prevent future errors. Views of Responsible Officials and Planned Corrective Actions: Employees will be allocated to the correct code as soon as notified allowing financial reports to reflect true payroll totals for salaries/benefits to all funds. Documentation for federal/single funded employees will be retained for 7 years. Payroll will have a list of employees who are paid by federal/state grants; a memo will be generated of these employees by the business manager by August 1st to be provided to the payroll office.
2022-007 - Education Stabilization Fund - Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425D and ARP Elementary and Secondary School Emergency Relief Fund - Assistance Listing No. 84.425U; Grant Period - For the year ended June 30, 2022 Condition: The requirements for equipment and real property management require property records to be maintained to include details related to any equipment or real property purchased with federal funds. A physical inventory of the property must also be taken and the results reconciled with the property records at least once every two years. The District does not have a process in place to track equipment and real property purchased with federal funds. The District has also not performed a physical inventory of federally purchased property in the past two years. As a result, equipment claimed under the Education Stabilization Funds were not properly tracked and reconciled. Criteria: Proper tracking of equipment and real property would result in the District providing capital asset records to identify equipment and real property purchased with federal funds. Equipment and real property purchased with federal funds is required to be tracked separately and a physical inventory performed every two years. Cause: The District did not have procedures in place to track capital assets, nor did the District have a process in place to have a physical inventory once every two years. Effect: The District was unable to provide capital asset records to verify equipment purchased using federal funds was identified and tracked separately. Recommendation: The District should implement an internal capital asset tracking process as well as obtain a physical inventory of their capital asset records for capital assets acquired with federal funds. Views of Responsible Officials and Planned Corrective Actions: A capital asset list has been created with all assets being added for past and future. The District is currently seeking to contract with a third party for assistance in capturing all assets along with ensuring all depreciation is accurate.