Finding 1076029 (2023-003)

Finding Number: 2023-003 Criteria: The District should have an understanding of the reporting requirements in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Condition Found: As part of our audit of the District’s Schedule of Expenditures of Federal Awards (SEFA), we assist management in the preparation of the SEFA in accordance with Uniform Guidance. While our assistance in the preparation of the SEFA complies with Uniform Guidance, those standards also require that we report this material weakness in control over financial reporting to those with governance responsibilities. Cause and Effect: Although management reviews and approves the SEFA, there is not a system of internal control in place at the District to assure that the SEFA comply with Uniform Guidance in all material respects. This is because there is not an experienced accountant with the skills, knowledge, and expertise needed for this function employed at the District. Recommendation: We understand management and the Board of Trustees are aware of this issue, and believe it is not economically feasible to have an employee with the necessary skills, knowledge, and expertise for this function. We recommend the Board of Trustees remain involved in the financial activities of the District to provide oversight. Management response: Management agrees with the findings and recommendations. The Board of Trustees will remain involved in the financial activities of the District to provide oversight.