Finding 10539 (2023-002)

2023-002: Reporting Federal Emergency Management Act (FEMA) Assistance Listing Number – 97.036 Questioned Costs: None Criteria: Internal controls should be designed to ensure proper reconciliation and review of all reimbursement requests to the accounting records to prevent or detect misstatements or inappropriate request of reimbursement from federal funds. Condition: The School Board’s process for preparing and filing reimbursement requests forms for FEMA PA funds does not involve the review by the School Board’s accounting department and reconciliation back to the accounting system. Cause: The School Board’s has outsourced the administration of the Program to a private consultant. The accounting reconciliation and review aspects of grants administration may have been presumed to be performed by the consultant. Questioned Costs: N/A Effect: Errors and duplications of costs related to the reimbursement of program expenses could result in material misstatements and not be detected by the internal controls of the School Board. Recommendation: The School Board should apply the same internal controls of reconciliations and reviews of grant reimbursement requests that it applies to its education type grants. View of Responsible Official: The district will adjust its operations to include a financial review and reconciliation of the reimbursement requests prepared on its behalf by the private consultant administering the program.