Finding 1084336 (2024-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2024-11-14

AI Summary

  • Core Issue: $2,577,622 of allowable CSLFRF costs were recorded in the wrong fiscal year due to a lack of adherence to cutoff procedures.
  • Impacted Requirements: Expenditures must be reported accurately for the Schedule of Expenditures of Federal Awards.
  • Recommended Follow-Up: Improve communication among all parties involved in grant management to ensure proper recording of expenditures.

Finding Text

2024-003: Controls Over Cutoff – COVID-19 Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) (Material Weakness Controls Over Compliance) Condition: During our review of CSLFRF expenditures, we noted approximately $2,577,622 of allowable costs that were recorded in the wrong period. Criteria: The expenditures must be reported in the proper period for accurate reporting on the Schedule of Expenditures of Federal Awards. Cause: Procedures in place to ensure all expenditures are recorded in the proper period were not followed. Effect: Approximately $2,577,622 of allowable costs were recorded in fiscal year 2025 instead of fiscal year 2024. Questioned Cost Amount: N/A – the expenditures in question are allowable costs that were reported in the wrong fiscal year. Perspective Information: Five invoices were recorded in the wrong fiscal year. Context: Grant management and District management did not communicate about June 30, 2024 cutoff procedures. Recommendation: We recommend continued communications with all individuals involved in the grant process to ensure activity is recorded in the proper reporting period. Views of Responsible Officials and Planned Corrective Action: The District uses an outside party to oversee grant management. District management will review work performed by outside parties to ensure completeness and accuracy.

Categories

Reporting Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.11M
66.468 Drinking Water State Revolving Fund $2.53M