Finding Text
Criteria or Specific Requirement: Reimbursement based grants require funds to be incurred prior to requesting cash draws Condition: The School District requested federal funds without incurring expenditures to support the entire cash request Context: Internal controls are to be in place to monitor grant expenditures incurred and request reimbursement for the expended amounts Effect: Requesting funds prior to having properly incurred the expenditures results in having grant funds recorded as a deferred revenue. If the School District does not have expenditures by year end to cover the requested funds, the School District will have to pay the funds back Cause: the School District did not have the proper controls in place to monitor they were only requesting funds to cover the incurred expenditures Recomendation: The School District should put controls in place to monitor incurred expenditures and related reimbursements requests Views of the Responsible Officials and Planned Corrective Action Plan: Training has been provided to the Business Manager on how to accurately drawdown federal funds