2023-003: Activities Allowed or Unallowed, Allowable Costs/Cost Principles
Type of Finding: Noncompliance, Material Weakness
Condition: The school lacked adequate internal controls over its accounting disbursements to ensure that a) all financial activities were properly processed and recorded and...
2023-003: Activities Allowed or Unallowed, Allowable Costs/Cost Principles
Type of Finding: Noncompliance, Material Weakness
Condition: The school lacked adequate internal controls over its accounting disbursements to ensure that a) all financial activities were properly processed and recorded and b) the School remained in compliance with federal requirements.
Context: During our review of the school’s accounting records and internal controls, as well as through management inquiry, we noted the following:
For eight of 25 accounts payable transactions tested out of the 15.042 grant, the school did provide adequate documentation to support the allowability of the expenditure.
For twenty-five of 25 accounts payable expenditures tested out of the 15.046 grant, the school paid amounts to and on behalf of illegitimate board members, totaling $82,127.
For twenty-five of 25 payroll disbursements tested out of the 15.046 grant, the school paid board meeting stipends to illegitimate board members, totaling $9,750.
Repeat Finding: No.
Action planned in response to the finding: Management will evaluate its internal controls over records management to ensure that all accounts payable disbursements are properly supported, and School Board expenditures are only paid out to and on behalf of eligible individuals.
Planned completion date for a corrective action plan: June 30, 2024
Name of the contact person responsible for corrective action: Marie Rose, Principal