Finding Text
INTERNAL CONTROL OVER SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS PREPARATION AND REVIEW
Child Nutrition Cluster (Assistance Listing No. 10.553, 10.555, 10.559,
10.582 and Title III ESSA No. 84.365A
Criteria
As described in our engagement letter, management is responsible for
establishing and maintaining internal controls, including monitoring, and for the
fair presentation of the schedule of expenditures of federal awards, including
the notes to the schedule of expenditures of federal awards, in conformity with
the modified cash basis of accounting.
Condition
The District does not have a system of internal control that would provide
management with reasonable assurance that the District's schedule of
expenditures of federal awards and related disclosures are complete and
presented in accordance with the modified cash basis of accounting. As
such, management requested us to compile the trial balance from the
general ledger and prepare a draft of the schedule of expenditures of
federal awards, including the related note disclosures.
Cause
Management does not prepare the schedule of expenditures of federal awards
in accordance with the modified cash basis of accounting.
Potential Effect
The potential exists that a material misstatement of the schedule of expenditures
of federal awards could occur and not be prevented or detected by the District's
internal control.
Recommendation
We recommend that the District review and approve the proposed auditor
adjusting entries and the adequacy of schedule of the expenditures of federal
awards disclosures prepared by the auditors and apply analytic procedures to
the draft financial statements, among other procedures as considered
necessary by management.
Views of Responsible Officials and Planned Corrective Actions
The District relies on the auditor to propose adjustments necessary to prepare
the schedule of expenditures of federal awards including the related note
disclosures. The District reviews the schedule of expenditures of federal awards
and approves all adjustments.